DCSIMG

Preparing Ahead

The Debt Detox

By Reyna Tabbada, Brighterlife.com.ph

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Blthumb_detoxSo, how are you doing with your New Year’s Resolutions so far?

As we aspire for more prosperous and purposeful money habits, one of the very first things we must eliminate is DEBT. Unnecessary ones, like those incurred through mindless spending; debt that squanders future opportunities and put the present on hold.

A DEBT DETOX is in order, and below are some exercises we can do to bring us closer to our ideal financial situation:

1. Follow a budget.

Anticipate all of your spending – food, transportation, even the night out – then allocate a specific amount for it. Follow it religiously. This minimizes the chances of incurring debt.

2. Eliminate vanity. 

It’s not about depriving yourself, but choosing what is best for you. Create a “dream fund” for that vacation or vocation you’ve always wanted to do. The easiest way to do this is to stop buying items that don’t contribute to this goal. 

3. Mind your time.

Time is currency – and a limited one. Be sure to spend it wisely and mindfully, because one simply cannot make up for lost time. Rest, spending time with loved ones, and dabbling in self-improvement activities are good uses for any extra minutes.

4. Save.

It may be the Year of Saving with all the automation and conveniences already available. A popular route is to hook up your payroll to a separate savings account, where a fixed amount is transferred at a specified time.

5. Discipline your credit cards.

Credit cards can be constructive or destructive depending on whose hands you put them on. Decide on specific uses for them – to pay for insurance, utilities or online purchases – and stick to it. This conditions you to spend within your own boundaries, not just on how much your credit limit is.

 

Image used under Creative Commons from Pink Sherbet Photography

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