All Women's Talk

8 Ways to Avoid Getting into Debt ...

By Alison

Ways to avoid debt are really important to consider, whether you are a spendthrift or not. Some people get into financial trouble because they don’t live within their means, while others are affected by circumstances. Either way, debt is a problem that can affect your future and be very hard to get rid of. Avoiding debt is a good habit to start! So here are some excellent ways to avoid debt …

1 Make a Budget

Making a budget is an alien concept to most people. But doing so will really help you avoid spending more than you earn. There are lots of online tools to help you plan a budget, but at the simplest, budgeting is about deducting essential bills first, seeing what's left over, then allocating the remaining funds to entertainment, transport, savings etc. This is one of the best ways to avoid debt for sure!

2 Live within Your Means

The simplest of ways to avoid debt is to live within your means! If you don’t earn a six-figure sum, then you can’t afford a luxury lifestyle. Sure, we’d all like to live in a smart house and enjoy several holidays a year, but that’s not possible for most of us. So be smart, and only do what you can afford.


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3 Resist Gadgets

Modern life seems to be all about getting the latest gadgets. How many people do you know without a smartphone? However, it’s easy to get hooked on gadgets, think you can’t live without them, and feel you must always have the latest upgrade. Nothing is that essential, so employ this tip for avoiding debt.

4 Avoid Feeling Entitled

Many people these days have been influenced by celebrity lifestyles and years of relative affluence, so they think that they deserve the best. One of the best ways to avoid debt is to let go of this sense of entitlement, and remember that you can only have what you can afford. If you desire more, then work harder for it!

5 Follow Your Parents' Example

There are lots of ways to avoid debt, and perhaps one of the easiest is to think, “what would my parents do?” Most of our parents grew up in families that didn’t have much money, and they learned to use their money wisely. Take a lesson from your parents, and you too can live without getting into debt! If your parents are still living, consider asking them for tips and advice on budgeting.

6 Think Twice before Spending

Are you an impulsive shopper? It’s easy to buy almost without thinking, especially if you shop online or take your credit cards. Instead, before you buy anything, always take some time to reflect on whether you really need or want the item. You will probably realize that you don’t like or want it, or that something else takes priority over this item. What a great tip for avoiding debt!

7 Prioritize

Debt can often be incurred when someone spends indiscriminately, and instead of choosing one item, they buy everything they want. You must teach yourself to live within your means! Learn to prioritize – what do you need most? Which do you prefer? If you want that $100 coat, you can’t have the $150 boots as well. Shopping is a luxury, so remember to place it at the bottom of your list when making a budget.

8 Save for Purchases and Emergencies

Debt can also be incurred by unexpected emergencies, such as your car breaking down. You don’t have the money to fix it, so the bill gets charged to your credit card. There’s a simple way to avoid this – put money aside for emergencies. And always save for any large purchases!

So as you see, there are lots of smart ways to avoid debt. Being in debt can be depressing, affect your financial future, and seem like you’ll never get out of it. Debt can be dealt with, but the best option is to avoid owing any money in the first place. Avoiding debt is the smart way! How did you learn your attitude toward money - did your parents teach you financial common sense, or have you ignored everything they ever told you? Please comment below with any of the ways to avoid debt that you have been taught!

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