Life is unpredictable. You never know when a tragedy might strike and you may lose your job and thus miss out on your payments. Or some other unexpected expenditure comes your way, making you go off the track and increasing your debts. If you don’t take necessary precautions, the debts keep piling up until it reaches a point when it becomes a real big problem for you. So, it is better to control your desires and avoid getting into heavy debt rather than spending extravagantly and coping with stress later.

Below are a few tips that can help you avoid falling in debt.

Make a budget and follow it religiously

For starters, make an overall personal budget and follow it as if your life depends on it. Write down all your sources of income and expenditures for each month. Don’t forget to make space for other expenditures like insurance, licenses, holiday spending etc. This way you will have a clear idea of how much to spend in order to stay within your limits.

Avoid unnecessary spending

You might have heard this one a lot and yes, we know it’s so not the latest cool thing to do as it is termed as ‘no fun’ but if you really want to stay out of debt, start living within your means. Don’t spend extravagantly, focus on your needs. Buy something only if you have enough cash at hand to buy it otherwise falling into debt to satisfy your overstated lifestyle is not worth it. Go through your budget and cut back on all those spendings you do not necessarily have to do.

Be careful with the credit

If you are a credit card user, you need to be really, really careful while using it. Credit should not be used to buy stuff you otherwise can’t afford and even if you do, make sure you have enough money to make full credit payment by the end of each month. Otherwise, the debt will increase with interest and other charges and before you realize, you will be in heavy debt.

Limit possessions and living space to need-only basis

Give away all those things you really don’t need and buy only what you need. This will save you a lot of money that can be spent on causes worth spending.

Stop thinking about society and people

This is probably the most important thing you need to do because mostly people end up spending more than they should because they want to meet high standards of society. Becoming a people pleaser won’t get you anywhere except leaving you in debt. Stop caring about societal standards and just fulfill your needs. This way both your financial state and mental state will remain stable.

Recovering from a bad debt situation is a very tiresome experience; therefore you should try your best to follow these tips if you don’t want to fall in debt trap. It might not be possible for everyone but even a bit of effort to sustain your financial situation would do you nothing but good.