The age of 20 years is a period in which life experiences a transition period to become independent. Starting from graduating from college, starting work, getting married, moving from a parent’s house, and many others. You begin to learn to balance debt or bills with other costs needed. Many people can not manage finance in the future until finally causing a lot of debt in old age for years. Many people are tempted by various offers from lenders, ranging from low-interest installments to credit cards. The initial goal was to save financial problems, but many ended up ending up in debt. Well, so as not to get tangled with debt, you should do some effective ways below to avoid it.
1. Using a Credit Card Wisely
Some people think that credit cards are a savior when an emergency occurs. Although the initial goal is good, the temptation to use a credit card continuously will always be there. Credit card issuing banks will try to make customers become indebted, especially if they are young. Usually some companies provide minimal interest, various promos, and point rewards and various other benefits. All can make credit cardholders continue to use it even to the stage of dependency. Of course, a credit card can be a useful payment tool even if you can use it wisely and as needed.
2. Prepare Sudden Costs
As much as possible prepare a sudden fee for things that can not be predicted that will happen. Maybe the car is broken, you have pain, and many others. Set aside about 15% of your income each month for this fee. If you already have a reserve fund, then the potential to owe or lose money on principal income will not occur.
3. Live a Simple Life
Luxury goods can indeed make you happy, but only for a while. Ranging from expensive clothes, the latest high-priced technology, expensive food, and many others. All of that can indeed increase the level of life as well as satisfaction. But this luxurious life will only make life uneasy because of the pile of debt. Let’s just say that you cannot afford to live a luxurious life, so there will be no desire to buy luxury items that are not really needed.
4. Pay Attention to Items to Be Purchased
Note whether the items you buy are in accordance with the budget made or not. Don’t be blind to buying things that aren’t really needed. If it is not appropriate, then you should first postpone the purchase and plan to buy it in the future if you have a budget for it. Although you have to wait a long time to buy it, you will be able to avoid dizzying debt. There is nothing wrong if you want to buy goods that are not basic or urgent needs, but it is better if you save first to buy it.