The real issue is that you would run yourself into debt if you were to follow the same model. One very real fact that many people don’t realize is that you can stay on top of your finances and avoid getting into debt with only the money you make. Consider the following financial tips:
Financial Tip #1- Do You Really Need It?
Know the difference between Want and Need. Avoid the things that you really want and only get the things you really need. Practice this method for a while, and then reward yourself from time to time with something you want. Ask yourself this question, “Can it wait until the next payday?” Many people will get themselves into trouble by borrowing money from their credit cards, their friends, or through payday loans to purchase items they can really live without. Be disciplined and save up the cold hard cash before you buy it.Financial Tip #2- Create a Savings Account for Emergencies
Before even rewarding yourself with things that you want, create a savings account for emergencies. This will enable you to use cash instead of borrowing money when the time comes. Reflect on the times where you needed money the most and how much you needed. Remember also that multiple emergencies can happen in a short time span. Save enough money to take care of two or three emergencies you might have. When you have depleted this account, begin building it back up as quickly as possible.Financial Tip #3- Get Out of Debt Permanently
Pay off your credit cards, and do this before setting up a savings account and buying the things that you want. Credit card interest rates are high, and interest is money that you pay without receiving any goods or services. Use your credit cards only in times of emergency and after you have depleted your savings account first.By following these simple tips, you can free yourself of the burden of debt with only the money your currently make. The key is having patience. Impulsiveness leads to debt, and debt incurs even more debt. Make a goal to be debt free and financially secure.