Be Debt Free in 2022
Bad money habits often leave debt hanging around our necks in the long run. Someone once mentioned that one will at one time or another need to take a loan.
Irrespective of this reality, you must have a plan scheduled on how to repay, such that it does not overwhelm you or your finances.
Most times, our expenses expand with the pay increase. 100,000 NGN salary has become 150,000 NGN and you realize you do not still have savings or still end up borrowing before the end of the month. It is one of two things or both.
Buying things in hopes of paying up when your salary comes in. Either you are doing this to support your friend or you really need to fulfil a need.
It is a wrong move. This way expenses pile up and you end up spending up your income as soon as you get it, other times you would have an unpaid debt waiting for your next salary and the cycle keeps going.
Secondly, you spend way more than you earn. In order to avoid being in debt and save, you need to spend less than you earn. Here is an instance, let’s say you used to earn 50,000 NGN, you could not afford to go to an eatery to have a nice time.
Now you earn 70,000 NGN and can afford to, not satisfying this want leaves you an extra 20,000 NGN to save or maybe 10,000 NGN if you decide to budget 10,000 for your outing.
This leaves us to take a loan as a necessity. Taking a loan for a well-planned business venture, taking a car loan for business, taking a loan for investment, should fetch you money to pay back.
Irrespective of this, you should have a plan B on how to repay just in case things do not go as planned. Oftentimes than not, in business, it is advised that you start small. In starting small, you get to cushion your losses if any.
Are you a compulsive giver? You do not know how to say no? Some colleagues might see you as a target to make a money request from as they believe, you do not have children to carter for.
This should sink in and help you say no as a lot of people make selfish demands and obviously, a rising increase in the level of entitlement people have. Compulsive giving will make you spend more, expenses you did not budget for.
Importantly save to buy instead of borrowing to buy. Live on a budget and avoid debt as much as possible.
