Tips For New Generation That help Them Vanish Their Debt Burden!
The generation today desire a lavish life and follow a “SWAG” lifestyle, which lacks patience and is filled with hustle-bustle with debt. They utilize what they earn in getting all the things, be it trendy clothes, watches, shoes, or trendy gadgets, everything that matches the high standards of living.
This swag lifestyle sometimes makes them end up with long credit card bills, heavy interest ridden debt, high EMIs, and low or no cash reserves, now that is not so swaggy, isn’t it?
The generation today relies on paycheck-to-paycheck, and they hardly do any kind of saving or have any cash-reserves, which ultimately ends at increasing the debt burden on them. Well, no worries there is a solution that can help generation today to get out of debt burden and also help them save money, but these solutions are initially a bit hard and bitter to opt for. However, once it starts making its role known, these routines will become much easier to follow.
Cut The Swipe-Off Habit!
Although credit cards are much helpful in many situations, it is not less than a plastic tumor. Credit cards are too good to resist when it comes to no cash availability. The way people use credit cards, it seems like they have forgotten that it doesn’t give you money for free, instead charge interest from them.
Repayment of credit card bill lasts only for 45 days thereafter the whole amount is charged at an exorbitant interest rate (around 36% per annum). This bill is to be arranged by you from your salary that too without negotiating the essential monthly expenses. There can be chaos in your financial planning by one bad unplanned swipe. Hence, the best option is to put a stop to this tumor and start saving for buying stuff.
Cut Your Lavish Expenses
The generation today is much fond of dining out, especially one who stays alone, and their all-time excuse is, “where is the time to cook?” even if they have! We do not suggest starving, but if you eat home-cooked food, you obviously will have dual benefits, affordable food, and good health.
Everyone has one of those expenses, which we always feel is not obvious. Cutting down on these unnecessary expenses will not only help save some extra buck but also bring in a healthy financial habit.
Your confined expense list will help you stay away from debt and help you save a good amount of money, that you can use to invest in mutual funds for your big goals. You can also use these extra savings to repay your debt (if any) soon.
Extra Source Of Income
In case if you have heavy debt due on you, and you are struggling with your salary and other necessary expenses, to repay that debt then here I have a suggestion for you. Some part-time work or extra shift is painful, but it is the most helpful cures for your heavy debt.
Shopping In Haste Must Avoid!
The great Indian Festival of Amazon ended just five days before. You might have also done shopping as a discount was big. These offers and discounts are always tempting but remember your budget is not tempting. Purchasing anything without any research, just because it is offering a good discount may harm you some time and will also leave you with a good debt to be repaid.
Thus, it is always advised for planned shopping. When the purchase of an individual is planned, not only the debts are taken care of but also, they save on unnecessary debts and their interest.
The above strategy helps the generation today, to plan their necessary expenses in such a way that they end up saving a good amount per month, the amount that they will save per month can be invested in mutual funds via SIP. This will help them create a good corpus that will help them achieve their goals without any financial hurdle.