Today in the world there are lots of people, which are living in the debt due to economics situation around the world. This burden effects every aspect of their life. This can knock their health due to financial problem, weaken their relation and ever thing around them is just a shit. In this situation they have no idea how to change it, In this case i think usually first we need finical advice who want to be debt free life.
Here are the following step you must have to follow to have a debt free life.
Admit you are financial problem or going to be soon.
First things you have to admit that you have financial problem,generally lots of people are in debt because the don’t see it a problem and don’t admit it. Still after having problem you are driving luxury cars and regularly eating at restaurant . Whether you face any problem yet or not. You have to spend less then what you have earned. Save for future emergency and retirement.
Tip. Reduce your unwanted expenditure just for comfort and luxury,Spend less what you earn and save for future emergency.
In order to regain control, a list needs to be drawn up of every amount owed, no matter how big or small it may be. You also need to know your monthly income and expenditure. You need to know what you are spending on essentials. What is left over must go towards paying off debts.
Once these facts and figures are available, it is possible to come up with a plan. Some people prefer to do this themselves and others find it helpful to consult a financial adviser. Such an adviser is usually able to come up with a way to consolidate debts so that a single monthly payment can be made and this helps to eliminate a lot of stress.
Save every buck and pay of your debt first
Deciding which debts are most important to pay off and how much to pay to each creditor on a monthly basis can be quite difficult. Some people pay off smaller debts first which gives them a sense of accomplishment and when these are settled they have more to pay on the larger ones. The difficulty with this is that those attracting higher interest rates increase all the time. It is usually better to pay more towards the debts with the highest interest rates.
Talking to your creditors is vital. Ignoring them just causes further problems. Being upfront and communicating with them means being able to come up with a plan together on how to go about settling the amount. These creditors are often reasonable enough if they are approached in the right way.
Saving money tips
Many little savings add up. Buy what is on sale, use coupons, buy cheaper brands and do many errands at the same time to save petrol. Think before making any purchase about whether it is essential or not. Eat at home, turn off unused lights and find other ways to save on utilities. These little changes do make a difference and it can even be fun to see how much can be saved in this way.
All this involves discipline and being strict with yourself but the benefits are worthwhile. You will begin to see how your debt burden is being reduced and this will offer incentive to continue. Eventually you will get to the point where you are actually able to begin saving and investing for the future. It is possible to reach this goal and to maintain these positive habits for the rest of your life.
further invest your extra earned money to develop new assets of income.or invest money in your part time business to increase cash flow.