By Spending is like a horse without a leash. It will gallop heedlessly about. The same applies to spending without applying the break of wisdom, which can lead to debt. Debt arises as a result of lack of proper planning or submitting to impulsive buying. There are several ways to avoid debt as a man? In this article, I will be sharing with you five effective tips to avoid the trap of debt through wise spending.
1. Differentiate Your Want from Your Needs
It is a given that human wants are insatiable. However, in Economics, there is a concept called ‘Scale of Preference‘. This is a situation in which you tabulate your needs according to their importance. Do not spend your money on unimportant things. For example, you could decide not to buy another trouser because the ones you have are still in good shape and they are serving you well. When you scale your needs according to their priority, it will save you from unnecessarily spending which can lead you into debt.
2. Stay Within Your Budget
If you don’t stay within your budget as a man, you run the risk of overspending and then borrowing when you are not supposed to. Don’t buy anything that you have not budgeted for no matter how important it is. If you can submit to this discipline, you will not only stay within your budget, you will live a debt-free life.
3. Don’t Spend to Impress
Perhaps, you came across a lady who you want to impress. Spending too much of your finances to make her see that you are financially capable isn’t the best approach. While it is good to show your mettle as a man, it shouldn’t be at the risk of your finances. What is the wisdom in accumulating debt because you are trying to impress a lady? What if the lady is not interested in what you are offering? You will just entangle yourself into paying back a debt you shouldn’t have incurred in the first place.
4. Don’t Buy What You Can’t Afford.
Many men fall into debt-trap when they borrow to buy what they can’t afford. It is far better to save up and then go for what you want to buy with your own money than borrow from others. There could be a caveat to this rule if what you desire to buy will generate more income for you by itself. Let’s say you intend to buy a landed property in order to build apartments that you can resell within a short period of time. If you do this, you will not only make profits, you will easily pay off your debt.
5. Have a Legitimate Reason for Spending
A lot of men spend without answering the questions behind their spending. If you can’t honestly give a good and worthwhile reason for spending, please don’t spend. Let your spending be guided by good reasons.
Conclusion
There is so much peace that accompanies living a debt-free life. You don’t have to hide from anyone nor will you be harassed. So, to prevent wallowing in the pool of debts, make these financial tips shared above your guide.
READ ALSO: Spending or Saving: Which Pays More?
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