Debt Nation: Want To Stay Debt- Free? Learn How To Save

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Buying on
credit is the easy way to acquire. However, it is not the smartest thing to do.
Essentially, you are spending money that you do not have. In exchange for
having access to credit, you will be charged interest on your purchase.

Thus, you
end up spending more for the item you bought. And if you purchased an expensive
item on credit – a car or a house – you may end up losing more than the asset
and the shirt off your back.

People use
credit because they do not have the cash to carry out the purchase. Even if
they do, they are afraid of losing a big chunk of cash as it will make them
less liquid. So, they apply for credit on the assumption that they can easily
pay off the loan over the course of the agreement.

As we all
know, this type of story does not usually have a happy ending. Borrowing money
entails risk. You are basically hedging on your future. If things don’t go as
planned, you could be in a world of financial hurt.

If you can
pay cash – pay cash. By all means, avoid debt. When you acquire with credit,
you also acquire debt. It gives you one more thing to worry about every month.

A better
course of action is to learn how to save. By saving consistently, you improve
your liquidity – you will always have cash on hand. According to a study, only 39% of Americans have enough savings to
cover a $1,000 medical expense.

People are
hesitant to save because they have conditioned their minds to believe it is
hard.

We are here
to tell you that it is not hard to save. Here are 10 ways to save money:

  1. 1.    
    Open an account that is dedicated for savings.
    After you’ve paid off your bills and other monthly obligations, keep 20% of the
    balance as savings. The rest? Look for safe, conservative investments or
    placements that earn higher interest than a savings account.

  • Turn off all
    unused appliances. If no one is using the room, turn off the lights, television
    set, and other electrical appliances.

  • Stop eating
    out – brownbag to work. Not only is it cheaper but preparing your own food will
    give you the opportunity to eat healthier meals.

  • Can’t function
    without your early morning caffeine-fix? Brew your own coffee at home. It is
    much cheaper than buying a $10 cup of coffee.

  • Consider
    running your business online. It will save you money on rent and utilities.
    There are apps that can help you manage your business tasks from the comforts
    of home. For example, Asana and SalesForce for project management, Skype and
    Viber for communication, and DropBox for file sharing.

  • Never buy on
    impulse. Do you really need the latest smartphone? If your phone is still
    working fine, don’t replace it.

  • Try not to
    spend for an entire week at least once a month.

  • Go for generic
    medicines and unbranded food items.

  • Cancel
    unnecessary subscriptions and memberships. Netflix or Cable? One must go!

  1. Switch to
    energy efficient fixtures. They might be more expensive but your expenses will
    eventually be covered by cost savings.

It is not
hard to save money. All you have to do is take that first step.

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