Living Debt Free No Mortgage | Budgeting Tips

Living Debt Free No Mortgage

Living Debt Free No Mortgage | Budgeting Tips – Everyone wishes to have wealth, to be rich and live a comfortable lifestyle. No one desires to live a poverty stricken life full of insecurities and debts. We are living in a society which dictates our achievement and potential by how wealthy we are.

We strive hard to function smart, spend and create positive progress in life which will lead us to the right path as we meet all our targets and objectives in life.

How many of you are now struggling with debt? Perhaps it’s from student loans or maybe it’s due to credit cards. No matter the reason might be, this must be the year which debt free living becomes a priority. This needs to be the year that you tell debt goodbye once and for all.

We can talk about the way we need debt free living, however, it takes more than just speak. It takes action. Kicking debt from your life isn’t as difficult as you might think. It just takes a good strategy and a great deal of dedication.

Debts can seriously violate your financial progress and cause you to wallow in the swimming of doubts and concealing from your friends or cooperatives that you’re owned. What exactly do you really want to do to start your journey to debt free living? It’s simple, you want to follow the following eight steps.

Step 1. Know that you have bills to repay and pay them enthusiastically

So long as you live in today’s world, you’ll have bills to settle. When you get your accounts, kindly take a daring step and pay enthusiastically. You should be happy to settle everything you’re owned.

It’s an issue of fact that you should not pay unnecessarily. If you pay painfully, you are just dance to the song that the money is hard to get and you aren’t delighted with the turnout of things.

Step 2. List out all of your debts

Start by listing out each one of the debts by their own rate of interest. The highest speed is going to be on top of your list. Why? Since it’s the debt costing you the cash every month.

Now you have everything on paper, you have a visual idea of what’s before you. It is possible to see which debt you are likely to concentrate on the first, second, etc down the listing.

Step 3. Start setting up an emergency fund

Have you got an emergency fund set up for yourself? Otherwise, it’s time to get a savings accounts.

Emergencies are certain to happen to all of us. It may be dental work that insurance will not cover. With a rainy day fund, all these surprise expenses won’t cause a significant setback to your budget.

How much should you have on your emergency fund? Some of us will tell you which you want three to six months worth of costs. Even though this is an excellent long-term goal to get, it’s not sensible while paying off debt.

Instead, start off small putting away money each month until you have $1,000. This is an excellent place to start. As soon as you’ve become debt free you can begin adding additional money for this.

Step 4. Put your Accounts on autopilot

Automatic payments are one of these ways. Instead of making a payment each month on every bill which you have, you can set it and forget it.

There are several benefits to automating your life. Not only are you going to make things much easier for yourself, but you will cut down the risk of having a late payment. The very last thing that you need while you’re working so hard to pay down debt would be a wasteful fee.

Step 5. Downsize your life — temporarily or permanently

The last thing a lot people want to do is remove the things we like. However, there are times when it’s the very best thing to do.

Start by taking a look at the funds you’ve made earlier. Are there things you might do without, even if it’s only as you’re paying off debt?

What about your cable tv? Did you know the average cost for DirectTV is roughly $101 a month? With alternatives like Sling TV or Netflix, you may cut the cable and never go back.

The average American will pay $232 per month ingesting a meal outside of their home. Imagine if you cut this in half? The extra $116 monthly may be quite beneficial for your debt payoff plan.

Step 6. Transfer your credit card accounts

Many of you have probably ditched your charge cards at this point. However, you might be surprised to know that a charge card might actually be to your advantage.

In case you’ve got several high profile accounts, you can use a balance transfer to move everything to a single card. Most balance transfer credit cards will have an introductory 0% APR offer. This will allow you to pay off your debt without accruing finance charges on the way.

Step 7. Track your spending

The secret to living a debt free existence will be to definitely know how much you invest and the amount you save in precisely the identical moment. You must track your cash flow and at the conclusion of the day that you will be able to understand and have confidence of all your financial spending.

Step 8. Have a look at your insurance and examine it

Financially and debt advisors always tell their customers to be keen on their insurance and examine its plans consistently. You want to appear at your life insurance requirements. You need to follow it to test it covers more than 10 occasions of all your earnings. If you have children less than ten years, then the life insurance must also cover on debts incurred by the bigger family.


These are definitely the most proven ways that will easily help you get out of debts. You need to develop a plan and understand that invoices are there to be settled. No matter what money you borrowed, be willing to pay as per the arrangement of agreement and not about pilling debts because they will return to affect you later in life.