Can you live on a budget and live debt free? Yes, you can. Living on a budget and debt free is possible with the right planning. When living on a budget it is a lifestyle you shouldn’t be ashamed of. Living on a budget means doesn’t mean your broke it means you are conscious of how you spend your money. There are many ways to live on a budget and stay debt free such as living below your means, closing account for lower limits, cutting back and getting rid of costly friends.
Live below your means
Living below your means does not mean you have to be frugal. You can still get the same enjoyment out of life without paying a lot for it. Most people associate good times with spending a lot of money. Living below your means is becoming a popular lifestyle and may be a permanent lifestyle. After all, if you are happy seeing your disposable income get put to good use why would you go back to what you brought you in your tough situation.
Closing accounts for lower limits
Closing accounts does hurt your credit score but if you are focusing on paying cash for everything all you need is credit. Cleaning up your credit report should be carefully planned. Most people strive to have the best credit but it puts you at higher risk for identity theft. I would rather have fair credit and a lot cash then to have great credit and limited cash. Fair credit and a lot cash allows you to clean up you report or address legal issues when they arise. If you have great credit and limited cash your report is going to take a hit all your hard work goes un-done. I am not recommending putting off establishing great credit but bringing to your attention the importance of cash.
Cutting back is a good way to weed out the excess in your budget. When cutting back make sure you buy things with cash as opposed to credit. If you can’t afford to pay cash then you do not need it. If you have the discipline to pay the balance in full at the end of the month then by all means, but do not make credit purchases a habit.
Get rid of costly friends
Do you find yourself footing the bill for friend more often then you would like? Well, you need to kick them to the curb. I know it may unreasonable at first, but you have to consider how they are affecting your financial future. If they are good friend they will understand and become more conscious of what they are doing. If not, peace!
There are many ways to live on a budget and remain debt free. You have to decide what you want to with your life. Good luck!