Get Out Of And Stay Out Of Debt

Being in control of your financial life is not always easy but it is very important. If you take your eye off the budget or overspend without thinking the sad reality is that the consequences of those actions could be felt for a very long time. So as much as you want to live a carefree life you need to accept the reality that a degree of care and planning now will allow for a significantly more carefree existence in the future. But what does that care and planning involve? Here are a few tips and ideas to help you stay ahead in the financial race.     

Stay out of debt 

The bigger the debt the bigger the disaster, and the real trick is to stay out of debt in the first place.  It is not like credit repairs are impossible, that is absolutely not the case and there are very good debt counselors and advisors out there, but coming back from a bad debt situation can be a tough road. 

If you are in a situation where you have been defaulting on payments and not being able to service the debt you need to consolidate it and set about fixing things. Use the internet and search for something like fix my credit rating Australia and you will be steered in the direction of people who can help – a financial doctor if you will.  

Luxuries are exactly that 

There is nothing wrong with buying luxuries but remember that they are exactly what the name says.  In our modern consumer society there is a tendency to mistake luxuries for necessities and that is the first step to over-spending. Things like chocolates and soft-drinks and eating out are all great, but they are not really needed. A quick analysis of spending patterns usually shows that people spend far too much on items that they don’t really need – and then they wonder why they are not making it to the end of the month.   

Maximize your assets 

Make sure that all your assets are working for you. If you have a car is it best left all day in the parking lot at your office or could it be used as an Uber? Have you got a spare room at home that could be leased or offered out as an Air B&B? These are the type of things that you need to look at and look for. Financial health is about positive cash flow and deriving value from your assets, so don’t take things for granted, see what they can do for you.  

No such thing as working too hard (Hustle) 

Your job is not always going to be able to cover all your bills. Ideally that is the situation that you would like, but if you want to earn more than your salary allows then you need to look beyond your employment and start thinking about a side hustle. It doesn’t have to be overly fancy or posh, and it absolutely isn’t going to replace your main income source (certainly in the beginning), but it will be another income stream and it will take some pressure off your primary source of income. So find the angle and go for it.