Wherever we go, no matter how many people we know—be they celebrities or ordinary people—no one seems to escape from the chains of debt. It’s like everyone we know is in debt. We’ve long accepted that having debt is normal in life. Like our bills, debt is always there, demanding our clearance. To us, being in debt is a necessity rather than an unwanted expense.
“Some debts are fun when you are acquiring them, but none are fun when you set about retiring them.” – Ogden Nash
But the truth is, having in debt is never a good sign. It’s not a sign of progress. Quite the contrary, actually. Having a debt means your current income cannot afford your lifestyle. Living in debt is a burden on your part as it gives you a financial responsibility that you shouldn’t shoulder.
Why do we keep ourselves trapped in the chains and burden of being in debt? Is there any hope to break free from it? Here are the top 3 reasons why you’re forever in debt.
You’re keeping up with the others’ spending
Do you know the number reason why you found yourself stuck in debt? It’s because you’re so hell-bent on keeping up with the spending of another person. Don’t get us wrong, there’s nothing wrong with dreaming of building your own house in the future. Or perhaps you want a new car, or maybe the latest iPhone or your dream smart gadgets. In fact, having these dreams and goals is great because it motivates you to work harder to achieve your goals and the standard of living you want.
However, it becomes wrong when you crossed the line. It is unwise to start loaning, leasing, or landing in debts just to buy an iPhone that you don’t really need right now. Oftentimes, we commit impulse buying because we want to get even with another person. If not, we simply want to “look rich” in front of others.
While the idea of “being rich” gives us an instant gratification, trust us when we say that it’s not the case in the long run. It’s quite the contrary, in fact. You’ll find yourself carrying the burden and frustration of paying debts when you don’t even need it.
Instead of indulging yourself in debt, learn to control yourself and exercise patience. Save money to be able to buy your dream gadget in due time.
You Spend More than Your Budget can Afford
Another reason why you’re always in debt is that you’re not practicing your budgeting skills well. You often tend to buy unnecessary things that are way out your budget before paying the necessary bills. To have effective budget management skills, follow this formula:
Income – Savings = Expenses
That’s right. You need to subtract your savings first so that in a case of emergency, you won’t need to take a loan or a lease again. Instead, you will get the money from your reserve pocket. You should use the remaining money for your expenses.This is the only formula that works. You need to do this if you want to have a tight control of your money.
One of the terrible ways one can land into an unavoidable debt is when one of our beloved ones become ill. We often take our health for granted because we think we’re still young enough to acquire deadly diseases. Terminal illnesses are only for the old. However, during this day and time when every piece of food is chemically-induced and processed, it’s important to start paying more attention to our health now.
Start investing in health insurance. That way, if something unpleasant happens to you or your family, you’ll be doing fine. The health insurance will cover these unexpected expenses of yours. In the long run, you’ll find yourself free from the burden of being in debt.
If you can’t afford to get a health insurance right now, you can opt to live a healthier lifestyle. Eating healthy, organic foods and having an active exercise regimen is still the best and cheapest way to stay healthy and physically fit. Furthermore, it lasts for a lifetime. Not only you are able to live a healthy, longer life, but you also become happy since you don’t need to bother yourself with paying hefty bills of debt.