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Top 6 Ways to Live Debt Free

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Top 6 Ways to Live Debt Free

Debt is a burden that most people don’t want to live with. It creates stress that can lead to physical problems that many don’t associate as being caused by the debt that they carry. If you carry financial debt, it is important to pay it off or always have a way to pay it off if you need to. These are the top 6 ways to live debt free

Keep Savings & Emergency Funds

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By always having funds available when things come up, like unexpected expenses, you won’t have to go into debt to cover those expenses. Also, if anything comes up that you may want, such as renovations to your home, or perhaps trading in your car, you can cover the expense without taking out a loan. Loans incur interest and fees and by paying in cash, you save yourself the extra expense plus the monthly payment. 

Pay for Large Expenses in Cash

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As mentioned, you should always plan to pay for large expenses in cash, for not only the stated reasons above but it also ensures that it’s already paid for. You don’t have to worry if you can pay the expense off in the future. Even if it means you delay the purchase for a short time while you save up the money to pay for it in full up-front, you save yourself the headache of going into debt. 

Take Control of Your Finances

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It is completely possible, if you do take out a loan or if you do have a credit card, to ask for a lower interest rate or better terms. The answer is always no if you don’t ask. If you have been making regular payments and your credit is decent, most banks will be fine with lowering your interest rate or renegotiating the term of your loan so that it is better for you as long as you are not asking often. 

No Frivolous Expenses

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Do you need the trendiest new jeans or shoes? Do you need that fancy new SUV with all the bells and whistles that just came out? Most likely the answer is no. If a cheaper alternative satisfies the need and allows you to save money, that is the one you will most likely want to get so that you can save your money and not end up in debt. 

Set Financial Goals, Stick to Them

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When you set smart goals, and make sure that you stick to those goals, you can be financially successful and live your life debt free. Smart goals should be ones that focus on paying off debts that you do have, saving up an emergency fund, saving for large purchases that may have to be made in the future such as a new car or new appliances, and possibly even investing to make more from your savings. 

Don’t Be Materialistic

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Life isn’t always about the “stuff” you have in life. It should be about the experiences that you have with friends and family. You can make those memories without spending a lot of the money you work hard at saving. Spend time with the important people in your life and all of a sudden the materialistic things don’t seem to matter as much. 

You can live debt free by following these top 6 ways that others use to also live the low-stress life of living debt free as well. It’s important to always think about what your financial goals in life are and always work toward them. 

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