Imagine “Oga Landlord” comes knocking at the door one fateful Saturday morning and you lock yourself in because you have spent your rent money, which you borrowed from Tola, to pay up Funke whom you borrowed money from six months ago.
As funny as this situation sounds, this has become the lifestyle of many people who live in an unending circle of debt. Achieving a debt-free life is possible if one is intentional about it. Here are ways to achieve it:
- Have self-control
In a world where businesses do not have the luxury of monopoly, products are literally thrown in the faces of people thereby spiking impulse-buying. Technology has not helped in this area as advertisements pop up every now and then on mobile devices with an easy option of free house delivery. So you can easily find yourself buying a shoe you do not need when that money could have been used wisely to prevent borrowing money in the near future.
Very linked to having self-control, you must learn how not to make purchases just because you have money at hand. It is very easy to be tempted to spend because you know money is sitting in the account. However, saving money for rainy days such as unplanned hospital expenses is very important.
- Be ready to make sacrifices
Eating out, expensive data subscription, premium cable package and going to the cinema are some sacrifices that need to be made when trying to be debt-free. If it is not necessary, stay away from it. You must be ready to deny yourself of some things to avoid being in the situation described above.
- Be goal-driven
Being debt-free is a goal. To achieve it, you must have a financial objective in front of you. Calculate your earnings, draw up a budget and stick to it. Know what you want to do, have a strategy and make it happen. It is not enough that you draw up a plan. You have to make sure your plan is specific, measurable, achievable, relevant and time-bound.
You must realize that those that run into debt worth millions probably started with a few thousands. This means that falling into debt can happen to anyone. That is why you have to make that deliberate and conscious effort today.