You don’t need a large income to be debt free

It’s not about the income level, it’s about the daily choices we all make with money.

I really admire the writer at Savings Advice. Living a debt free existence, she gets to the heart of the issues surrounding debt and becoming debt free. As the above quote shows, it’s quite clear that becoming debt free isn’t about having squillions upon squillions (although that would be nice).

Becoming debt free has a lot to do with the choices we make on a day-to-day level.

If you like moving from coffee shop to coffee shop or ‘investing’ in new season boots at an alarming frequency, then go for it. Just don’t then complain that lots of people have so much more money than you, which is why you’re in debt.

I hate acknowledging it too- that my debt is my fault. Maybe there should be a support group. We could have our own version of the Serenity Prayer. We could call it Debtaholics.

Short of finding such a wondrous place of support and meaning, maybe we should think about how we can get out of debt with the income we have, not the one we want.

Get smart

Think about what you’re doing with money. This lovely gent talks of his days in debt with an emphasis on how unthinking his financial decisions were. It wasn’t that he didn’t earn enough money, he just spent it unconsciously.

Get smart about your financial decisions, and you’ll start to see the savings potential.

Spend last year’s income, not next year’s

I know, this is my favourite spending maxim and I use it all the time, but the point remains. Every raise you get, bank as much of it as humanely possible. It’s remarkable how frequently you come across advice that suggests the best way to get out of debt is to borrow against something- your life insurance, your home, your friends and family.

Personally, these are risks I wouldn’t relish taking. I would much prefer to chip away at the debt, say with the money I get from a raise, than risk something like life insurance.

Get healthy

If your medical bills are costing you a fortune, think about trying to become debt free. It is suggested that debt stress is a contributor to health issues, from ulcers through to heart attacks. Your income can only stretch so many ways, so think about reducing your repayments at the same time as carving up your health costs.

Sounds like a sensible savings idea to me.

Money savers

If you’ve got a modest income and some liabilities, it can seem an impossible task to tackle your debt. But changes that can be made have no need to be drastic, it’s about your daily choices. Some quick money saving tips include combining your cable, internet and telephone service or investing in that wondrous new telephone technology called VOiP.

Having a small income doesn’t mean you can’t tackle your debt. Making a couple of small changes on a daily basis and understanding the true nature of your finances are two essential steps to becoming debt-free.

Are you aiming to become debt free?

Tell us the exact date and leave your email below, we will email you on that date to see how you went!

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