4 Steps to Take to Avoid Becoming a Debt-Hungry Individual

Some people tend to apply to as many lenders as they can at one time, or they borrow frequently from different lenders. This is what it means to be ‘debt-hungry’. It’s like craving to take out a loan each time you pass by a Singapore money lender.
Being debt-hungry is a dangerous lifestyle. It’s a quick way to financial ruin early in life. With that, here are four things you can do to avoid becoming a debt-hungry individual.
Stick to your budget
Follow your budget down to the last cent. This is the best and most foolproof way to avoid becoming debt-hungry. If you faithfully stick to your budget, you will not lack money before your next paycheque arrives. In turn, you will not have to take out loans often.
If you do not follow a budget, create one right away. List down your monthly income and expenses. Make sure you spend less than what you earn; otherwise you are setting yourself up to be trapped in debt.
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Minimise unnecessary expenses
If you realise that you are spending more than what you earn, evaluate your expenses carefully. See if there are things you can live without, like a subscription to a streaming service or daily purchases of brand-name coffee.
While these things may give you nice feelings, they are actually non-essential. You can live a decent life without them. You are doing yourself a huge favour if you cut out those expenses from your budget.
Remove those unnecessary expenses and watch how much more money you really have. You can then use that money for more important expenses or add them to your savings.
Prioritise saving every payday
Speaking of saving, a good rule of thumb is to save first before spending. Allocate a proportion of your income for savings, such as 20%, then deposit it into a separate bank account. Make sure that account is only for savings; do not take money out of it except for emergencies.
Each month, take that 20% and put it immediately into your savings account. This way, you can’t spend that money anymore. Budget the remaining 80% for your bills, food, transportation, and other regular expenses.
Invest some of your money
Investing is a wise way to become less dependent on debt. Take note that this is a long-term strategy; there is no quick way to invest and earn a lot. Anyone who tells you that is probably trying to scam you.
The first rule of investing is to invest only an amount of money you can afford to lose. If you’re just starting out, you can divide your 20% savings budget into two: 10% can go into investments, and the remaining 10% will be your savings.
Make sure to put your money in legitimate investments, like stocks, government bonds, or real estate. If you have a business idea, that can also be an investment. Use your investment budget as starting capital to get your business idea off the ground.
Your investments will earn small amounts at the beginning. In time, though, as you invest more money, those earnings will grow. The process is gradual, but you don’t have to work to earn that money. The investments earn for you even if you don’t do anything to them.
Conclusion
Being debt-hungry is a completely avoidable thing if you are wise with your money. Make sure to stick to your budget, moderate your expenses, and prioritise saving. Investing some of your money is also a good idea, and in the long run, you will have enough to avoid debt entirely.