The journey towards financial freedom
Debt-free living is a mindset. Here's some perspective on how one can start their journey toward becoming debt-free.
Set SMART goals
Not all goals are good goals – some are too vague, and others are way too unrealistic. If you want to succeed in your mission, you may want to set SMART goals- goals which are measurable and attainable.
Spend less than you earn
What cannot be measured, cannot be improved. The first step to reconsider impulse purchases is to create a budget and track it. The golden rule is to not be over-leveraged on credit. Spend, but less than you earn so that you have spare money to save, invest and scale.
Pay yourself first
Allocate a part of your income to savings and paying off debt. Rest is spent on how you see fit. This is the fastest way to reach your savings goals and become debt-free.?
Automatically save money
Automation takes the day-to-day money management effort away. It also acts as a catalyzer in growing your savings 5x faster.
Think about the long term, always.
Life happens. Occasional indulgences are fine; however, always keep the long-term plan in mind. Focusing on the long-term, say, 3 -12 year plans will keep you focused and motivated towards achieving it. Any month you go lower than the planned savings, you will know how much to cover up the next month.
The most important thing, however, is to just get started.