Think about what you’re doing with
your money. Many people spend money unconsciously, simply outlaying
money for their day to day activities. If you stop and think about your
debt, your spending will get better as fixing it now will help your
tomorrow.
Without a plan or financial goals,
you’re headed down the road to digging yourself deeper into debt. A
spending plan establishes goals and principles. If your goal is to save
N500, 000 for an emergency fund, then you need to avoid more debt along
the way.
Keeping up with someone else. Your
neighbor just pulled into his driveway with a new KIA sportage 2013
model, and you immediately think about buying the new Toyota Landcruser
2014 model. But it doesn’t stop there. Your brother tells you he just
picked up the latest phone in town, and you think about buying the one
that is more expensive than the one he just bought, that you really
don’t need. People do this to themselves because they don’t want to feel
they’re missing out on the goodies of life. But what they miss is the
facts about financial management. If those kind of people are living on
credit, you will never know because you’re so deceived by their life
style. Take a step back and assess the real reasons behind your newest
impulsive purchase, and then take action.
Some people lack discipline. Just as
they think about purchasing a new car because their neighbor recently
bought one, hopefully you have enough restraint to consider the impact
on your spending plan. If your goal is to get out and stay out of debt,
then discipline will play a major role in your daily financial life.
Financial discipline will help you assess your goals and consequences
when faced with a decision that could potentially take you off the plan.
Discipline is your friend. Embrace it.
Buying a new car every year. Your
neighbor bought a new car? Well, let’s just say you’re about six months
from paying off your current vehicle, but you’ve now convinced yourself
that it’s time to get a new car because you think you deserve it. Right?
Good! This is a main reason why so many
people dig in and remain in debt. This is time for you to decide what’s
more important to you, living a debt, free life or cruising in the
latest model.
For some people, credit is their cloth,
they cannot live without living in debt. They became so addicted to
their credit card that they hardly recognize their spending plan
anymore. That’s make your life largely financed by debt. This is the
reason it’s driving you crazy and it will certainly cause many sleepless
nights ahead.
For you to get out of debt, it requires a
strong but realistic spending plan that you can stick with through the
end. Forget keeping up with everyone else, and cut up your credit cards.
Spending your time trying to impress people who don’t factor into your
bottom line is a waste of money and will impede your financial goals.
Assess your financial goals, and decide if having a new car is truly
worth the money spent. Remember, it’s no fun being stressed because your
finances are out of control. Take control now, and enjoy the fruits of
your efforts along the way.
TIAMIYU ADIO ISMAIL
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