Three tips you must follow to master art of debt free living

Most of us dream of financial freedom and a debt-free life. We want to be able to support our dreams and lifestyle, but we also don’t want to fall into debt. This often proves to be difficult due to rising costs and the demands of a fast-paced life. However, there are some ways you can try and remain debt-free. These ideas may be tough to follow initially, but will help you in the long run. What you need to basically focus on is being proactive about your finances and making some major changes to your lifestyle and spending habits. Here are three tips that can help you maintain a debt-free life: Don’t live outside of paycheck: Do not exceed your limit in terms of finances. While the option of credit cards and EMIs make it easier for us to buy commodities, too much debt can impact your finances adversely. It can also lower your CIBIL score and make it difficult for you to obtain loans at a lower rate of interest. Therefore, you need to separate luxuries from necessities and plan your budget accordingly. Set some clear financial goals in mind. You also need to make sure that you adhere to the financial plan you have chalked out for yourself. 15 percent annual income goes into savings: Plan out a budget according to your income and maintain it strictly. You should start thinking about savings from early on. To ensure that your finances are stable, make sure that at least 15 percent of your annual income goes into savings. You can get a fixed deposit, invest in mutual funds or take any other route to do so. Steer clear of using savings: Unless it’s an emergency, do not utilise your savings for any purchases. You need to ensure that you are able to maintain your savings. This means keeping a check on yourself and your wants. Make sure that you do not fritter away your savings on impulse buys. If you follow these tips, you can maintain a debt-free lifestyle and have a fair bit of savings as well. What are your thoughts on these tips? Let us know in the comments section. Read all the Latest News , Trending News , Cricket News , Bollywood News , India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.