Why People Borrow Money?
In order to provide for our family’s needs we need to have steady income source. Some may get this from their salary while others are from business and other sidelines. However there are times that even if you have regular income, still it’s not enough especially if there are emergencies. That’s why the option of borrowing money comes in.
Different Ways of Borrowing Money
The world is changing so fast that nowadays there are lot of ways where you can borrow money. The traditional one is to borrow from your relatives and friends without any interest. The other one is through small-time money lending cooperatives or company wherein you borrow a specific amount and you will pay the principal together with the interest within a specific period of time. You can also borrow money in the bank through loans and the most common now is through the use of credit cards.
I Am Also A Borrower
Yes you read it right. I am also one of those who borrowed money from my friends and relatives especially during my senior year in college up until I started working and the most recent was my first year here in abroad. Sometimes I’m ashamed but I have to be honest about the reality. It’s hard for me because I am the breadwinner of the family that sometimes my salary is not enough to support them and my personal expenses. Fortunately those days has passed. I am now debt-free.
Why I’m Writing This Blog
I am writing this blog because I want to help those who are in debts now and are struggling to pay it. I understand what you’re feeling now since I myself had experienced it. In this blog, I will be sharing to you the exact three (3) tips I used on how I was able to get out from debt while supporting my family.
1. Acknowledge your debts but don’t let them stress you.
Most of the times, it’s hard to sleep if you have debts especially if these are large amounts. And consecutive sleepless nights will lead to insomnia and stress. Don’t let debts stress you. Accept the reality and acknowledge that you have debts to pay. You cannot escape from it. Instead of worrying about it every night and day, teach your brain to divert your focus on things which will give you happiness and temporary relief. Remind yourself always that these debts will soon be cleared and you will live debt-free forever.
2. Make a Payment Plan.
While training your mind takes charge about the psychological aspect of paying your debt, making a Payment Plan takes charge of the practical side. How do you really make it? You can do so by writing down the details as to how much is your total debt to pay and how long will you fully pay it, how much will be your monthly payment and which one you will pay first. I suggest pay first those debts with interest. If in case all of your debts have no interests, like in my case, you pay first the smallest amount so that every month at least one name will be crossed out in your list. It has psychological effect though. Once you’re done with your payment plan, make sure that you follow it as much as possible though you should still have flexibility especially when urgent needs arise.
3. Live simple.
Even if you effectively train your mind and follow your Payment Plan but your lifestyle is the exact opposite, still your goal of getting out from debt is impossible. Your way of life should align with your goal. Avoid buying your wants for the meantime. There’s a proper time for that. Spend money wisely by focusing on your needs. As much as possible minimize or avoid vices such as drinking and smoking. Avoid unnecessary meet ups and hanging out with friends. Minimize eating in expensive restaurants. Monitor your daily expenses and of course follow your prepared budget every month. Just to make it clear, I am not imposing that you should only do all these things and forget about the other ways because it still depends on your priorities. However your goal should come out of debt as soon as you can while supporting your family.
To your rich future,
Lebert “Futurich” Omac
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