Yesterday I talked about living in debts. I hate to live in debts but it's just so inevitable in this modern days. So.........is 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.
Source: FROM HERE
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?