Debt is an ugly word that too many people take for granted. Many people are in debt because they think life will turn around or they simply can’t say no when they want something rather than need it. Many people think that in a few years they’ll pay off their debt and live a happier life, but the truth is that most people don’t even understand debt to the fullest extent. What this means is they’ll always be in debt. Here are three pieces of financial wisdom you should have.
You Use Your Cards too Freely
Here’s the thing about debt; if you can’t afford it today, you can’t afford to pay it off tomorrow. That’s right, folks, if you cannot afford to pay cash for something right this second, you can’t afford to pay for it. What makes you think that your lack of cash today will turn into an abundance of cash tomorrow? You won’t be able to afford it when your credit card bill arrives, so don’t buy it.
Budgets Are for Everyone
It doesn’t matter how much money you have or don’t have, a budget is something you should stick to. It’s something everyone needs and must have at all times. You might have plenty of excess cash, but you still need to live within a budget. This helps you save more and manage your finances correctly.
You Think Everything Has to Be Spectacular
Not everything in life has to be grand. In fact, some of the best moments and most fun you’ll have in life involve nothing more than your own yard and a few great people. Yes, vacations are wonderful and driving the car of your dreams is fun. However, at the end of the day, your idea that everything must be expensive to be spectacular is incorrect. Sometimes the most fun you’ll have is sitting on your back porch with friends talking, laughing and watching the sunset; and it won’t cost you a dime.
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