The nature of your entire life boils down to your sincere answer to one important question “will I live a debt-free life or a life of owing?”

First, save, and afterward purchase.

By saving and after that purchasing, you pace your purchases, enjoy doing shopping with peace of mind and avoid running into debt. Unfortunately, the majority of individuals always make the mistake of doing the opposite. They go ahead to purchase whatever they want immediately the set their eyes on it, whereby indulging themselves into huge debts, and it keeps piling up as they purchase new things.

The serial enemies of financial freedom are credit, autos, and castles.

Credit cards

The major rule for credit cards is as follows: empty your credit card balance. In the situation that you cannot maintain the empty-your-credit-card-balance rule, then put on your thinking cap and be wise enough to implement the action of cutting up your credit cards and changing over to debit cards. The average individual goes along with 13 credit cards wherever he goes. There shouldn’t be any need to carry a wallet or handbag loaded with such a huge number of credit cards and debit cards. If it’s a credit card you’re using, try to pay the entire month purchase if it’s possible. By doing this you don’t max out the credit card and also you won’t incur any interest on the card. When you do max out stop, purchasing things, which is an option you can also use. Or make use of a debit card that will have the total cash balance in your bank account.

Cars

Directly after credit cards, what comes next as the most dangerous liability in the united state are Automobiles. A lot of people prefer purchasing a brand new car without taking into consideration that they are piling up unnecessary dept for themselves. Car financing is the reason a youthful excited auto purchaser can drive a $40 grand sports car with aftermarket rims that cost $2,000 and so forth. So what amount do you think this anxious auto purchaser who hasn’t set good credit rating yet paid for his ride? Taking his age into Consideration he presumably took out a 7-year loan, ranging from a 10 percent interest. This young eager is going to end up paying as high as $55,776. That is a $664 installment for 84 months.

 Considering the advance technical development involved in creating new cars of today, vehicles that are two or three years old from the date that they were manufactured are pretty much in the same class as new ones. A lot of individuals fails to understand that because these various companies want to sell their new cars they use different adverts and television commercials to influence people to buy from them. They lay more emphasis on the engine capacity and safety feature. And display fancy brand new cars driving on country roads and cityscape.

Let be sincere, what do you really think an advertisement from two years would be explaining? Hope you’re following, engine capacity and safety features, together with showing of brand new vehicles been driven through country roads and cityscapes. You should know that vehicles that are just two to three years old from date of manufacturing are 20 to 40 percent less expensive than new models. Well if you’re your still adament to purchase a brand new vehicle, that is alright. Please ensure to make proper savings for it and make full payment in cash. In order To avoid paying back loans.

Castles

You’re going to have to have some place to live. Wherever you live is going to cost you to buy or rent. Home ownership for most people is the American dream. But renting is not always a bad alternative. Owning a home involves costs and headaches that may not be worth the tax benefits and investment benefits that are earned. It is nothing to frown on you if you decide to rent instead of buying. I rented at a time in my life, and they were wonderful times.

Renting for some can be better for you than buying if considering it’s a lot easier to gather up your belonging and move somewhere when you rent. You don’t have any maintenance duties or expenses, which can be considerable. Like being the person who fixes things and mowing the lawns. When you’re young and don’t have a rich uncle who left you a big inheritance. You will have a difficult time affording a home with a swimming pool, but some apartments have them on the premises.

If you do decide to buy a house, be content on a definite house, not a modern-day castle. A lot of new houses are vastly too large, which makes them very costly to buy, heat, and cool. To be realistic, a lot of people buy just such monstrosities because they think they’ll impress the Joneses, who are the simpleton. Be content that you’re buying a house for your family, not a castle for the Jones.