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Tuesday, January 31, 2012

Debt-free is possible?


Yesterday I talked about living in debts. I hate to live in debts but it's just so inevitable in this modern days. it possible to live debt-free? People who have simple life will say that it's not a myth and can be done. REALLY?

Here are some good suggestions that I found from one website. We might be able to practice at least some of . the ideas:

1. Budget – Living without debt means that you must stay within the limits of your budget. It’s important to get this right. Otherwise you may end up short at the end of the month, which will send you back to the lenders.

-my comment: we've tried to stay within our budget every month and it seems to help a lot.

2. Plan – Once you have your budget, you can use it to plan in advance for major purchases. Say you’re planning to buy a new car. Normally, you would take out a loan to buy the car and spend the next five years paying it off. You cannot do that if you’re going to live debt-free. Before you buy the car, you will have to save up the money. This is why you must plan in advance.

-my comment: buying a bigger is in fact in our list this year. I've been saving some money to at least pay huge amount of money for the car but I guess with the price of the cars in Malaysia, we still need to take a loan. Maybe we just have to choose wisely.

3. Emergency fund – Even the best planning cannot predict emergency expenses. If your boiler breaks in January, you cannot spend the next three months saving up to buy a new one. Your family will freeze. It’s vital to have some money set aside for emergencies. Don’t be tempted to dip into the fund unless it’s a true emergency.

-my comment: we do have an emergency fund but somehow we need to use the money and then we are back to square one where we have to start saving again.

4. Sacrifice – Living without debt means having to make some sacrifices. The first thing that will have to go is instant gratification. Thanks to cheap credit, people are used to getting what they want, when they want it. It’s easy to hand over a credit card and worry about the bill later. If you’re going to live without borrowing, you will have to wait to make that purchase.

-my comment: it's not easy but we feel so happy if we can sacrifice our desire first to avoid from having more debts.

5. Focus – Everywhere you look, people are buying the latest gadgets, the trendiest clothes, the newest cars. Creditors are eager to lend you the money to buy these things. It will take a lot of will-power and self-control to resist the temptation to buy now and pay later. You have to stay focused on your goal of being debt-free.

-my comment: this is so true. It's not easy to close one eye or actually both eyes on the things like the latest gadgets and the trendiest things other people have that we don't have. It's not that we don't have the money but we don't see the importance of having those gadgets unless they are important in our jobs.


6- Lead a simple life and smile to those people who like to brag about their life but the truth is they are living with tons of debts. (this is my own point)

So, what do you think? Is it possible to live debt-free? Do you want to keep paying for debts even after you retired? What about the thought of burdening your children with your debts? Why should they pay for our debts when we are the ones who chose to have the debts?


yatie chomeyl said...

meme doh keno berhute kalu nk beli keto di msia, mujur ti beli keto least xkeno byr hute keto doh

transformed housewife said...

yelah. nok beli kat NZ maso tu Knur tak dop duit byk.

kakyong said...

org mesia memang byk berhutang..
mana2 pun tetap ade hutang.. besor periuk besor juga keraknya..

baru habis e1 hutang, buat pulak hutang baru.. stress kerja sbb nak byr hutang..

nak hidup x-berhutang... susah juga.. mcm kami ni kereta dah uzur sgt.. x leh jalan jauh, sbb x nak terbeban dgn hutang kami bertahan dulu (kena lah berkorban sikit) sbb masih ade hutang rumah, yg juga cukup perit nak dikumpul bulan2.. sbb kami bukannya ada gaji bulanan yg tetap..

la ni kalo org kata kakyong ni buta gadjet ke apa.. tak berpesen, dok pakai tudung & baju lama.. kita senyum jer lah..

AlohaMolly said...

Very much agreed Kak Nura...this year i have been good..have not buy an extra piece of clothes for CNY cos I felt i have enough in the wardrobe.

But spending on food and for kids are something I yet to learn how to control..hehe..

Btw..thanks..I received the mask and have used one of it! :) thx for the surprise pampering!

Cheers and have a lovely day!

Nia said...

saya terlajak jauh dah ni kak..byk hutang..hehe

transformed housewife said...

kak Yong: sabarlah. Insyallah ada rezeki Kak Yong dan anak2 tu.

transformed housewife said...

MOlly: YOu deserve to pamper yourself after what you've been through.

transformed housewife said...

NIa: boleh diundur lg kot. Ataupun boleh diselesaikan cepat2.

She Wears Premium Beautiful said...

Living expenses are just getting higher & higher that I feel it is simply impossible to achieve this debt free status.
Houses cost a bomb these days especially if you are living in KL.

And what about our child education fund? Nowdays, kids as little as 7 years old dah hantar masuk tuition! And by the time my kids masuk Uni, the fees would be tripled as much as it is now. If just 1 child is ok but most of us, at least have 3 kids. We were lucky back then with scholars etc but now?

And when the time comes for the kids to get married. Surely us the parents will need to fork out a lot too. Takkan kita nak biar our kids muda2 dah berhutang banyakkan?
And what about giving back to our parents who have sacrifice & spend a lot of money to raise us?

The more I think about this, the more I am confident that I have embarked into the right path :) Yes, it is high time for us to get up & do something to achieve this financial freedom status.

Anybody up for a chat, just give us a shout here:

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