6 Ways To Maintain The Debt-Free Lifestyle


Living debt-free is a common dream, but if you’re living paycheck to paycheck, it’s no simple task. In reality, in your quest to avoid debt, you may make mistakes that make achieving your objectives more difficult. So, if you’re trying to get out of debt — or avoid it altogether – avoid these frequent blunders.

Furthermore, the younger generation has a surplus of cash throughout their early working years. They can easily accumulate more money than they require due to their lack of responsibilities. As a result, these ‘extra dollars’ are used to live the luxury lifestyle they seek.

Debt, when utilized wisely, may help you build income-generating assets and increase productivity; otherwise, it’s wasted on items that don’t add value.

It’s important to realize that getting out of debt takes time. The following are the most important things to keep in mind on your journey to debt freedom.

Build a large savings

It’s difficult to build a large savings account, but it’s the most crucial approach to keep out of debt. Consider your savings as a contingency fund for unforeseen needs.

Savings is also necessary for long-term needs like a child’s school or a new home, which you may not be budgeting for yet.

 Keep in mind that by not taking out loans, you will be eliminating many of the monthly payments that other consumers make, giving you more money in your budget to save.

 Plan your finances

List the necessary expenses to keep your routine running (groceries, electricity-water-telephone bills, EMIs, and so on) and make sure you always have enough cash on hand to pay for them.

Sell items for cash

Make a list of items you might be able to sell on eBay, Craigslist, or at a garage sale. You can quickly reduce your debt burden by raising some extra income by selling stuff you no longer need or are willing to part with and utilizing the money to pay off debt.

Set goals

You’ll have no trouble focusing on the goals that inspire you if you find them. Look for surplus balances that can be channeled towards these goals after you’ve listed your cash inflows and outflows.

Determine the investing options that will assist you in achieving your objectives. This would serve as an indirect deterrent to impulsive purchasing.

Turn your junk into cash

We tend to buy things on impulse only to realize later that they were superfluous.

Anything in your house that hasn’t been utilized in the last 6-12 months is unlikely to be used again shortly. So why not get rid of it and make some additional cash by selling it?

Control debt

Maintain a debt-to-income ratio of less than 35% of your gross revenue. It’s preferable if the number is as low as possible.

When it comes to debt reduction, the most important thing to remember is to get started. Examine your situation and consider the best options for you. If you’re having difficulties paying your payments, seek advice from a financial expert as soon as possible.


The tactics mentioned in this pamphlet may not be appropriate for everyone, and no guarantees or warranties are made that they will generate certain results. No warranty is made as to the accuracy or completeness of the information contained herein, and the San Diego Financial Literacy Center, Debt wave, and its partners expressly disclaim any liability, loss, or risk, personal or otherwise, incurred as a result of the use and application of any of the contents of this flyer, whether directly or indirectly.

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