Be debt-free in 2016 (Part I)

A life without financial burden is the thing that everyone longs for. When being in debt, our life is affected in several ways. It may bring a lot of negative influences to your relationships, working life as well as your career life. Moreover, it is also able to directly affect your emotional behaviors. Someone who has run into debt tends to become stressful, angry, fearful and panic. Even, others are so depressed that they may feel suicidal, stay in bed all day or turn to a slave to drink and drugs. If you want to be stuck into these troubles related to debts, here is some guidance to be debt-free in 2016.

debt-free

1. Leave your credit cards at home

Credit cards is very helpful in payment procedures, however, due to its obvious advantages, credit cards tend to make us buy things uncontrollable. To save money, you should avoid impulse buying on credit and use cash as much as possible because the amount of available cash in your pocket may limit your capacity of buying products. Moreover, paying by cash may also help to evaluate the purchases on “want” and “need” basis. Minimize your “wants” until you are debt-free or can justify it by paying in cash. If you want to reduce the risks of bringing too much money in the wallet, you ought to use a prepaid card instead of a credit card which allow you to purchase something that are out of your payment ability. In fact, the typical credit purchase is 112% higher than using cash.

2. Cut back on expensive home entertainment

Some people may think that home entertainments are essentials; however, these things actually cost a lot and you are able to cut down on this kind of expense to save money. For example, Pay-TV drives up your monthly expenses and it is a waste if you pay for channels you rarely watch. So, instead of paying cables for TV, you may take advantage of home internet which offers a lot of live TV channels as well. In 2015, it is calculated the monthly average cost for pay-TV was $123 so if people can explore the advantages of internet, they may be able to apply $1,476 yearly cost of pay-TV in your debt with the highest interest.

3. Prepare the lunch

It means that you could save the cost of buying you lunch by staying away from lunchtime shopping and preparing lunches by yourself. Upon researches, average Americans spend almost ½ of their food budget on eating out. So, if an average New York lunch out is $15 a day and bringing lunch is $3, in ten years an American would save about $31,200. Moreover, you also could invest the cost of buying a daily lunch at 2% at least over 10 years and earn an additional $3,308.11 and even more.

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