Don’t Let Financial Decisions Derail Your New Year, Learn These 4 Wise Ways to Stay Out Of All Kinds Of Debt

Image by: Ben
By Alvin Martin

Everyone loves new beginnings. Each New Year never fails to offer a unique opportunity to do better and start a new chapter in your life.

And speaking of new beginnings, Randy, a cousin of mine who just got married last October is planning to buy a car and a house this year. To do that, he needs to get a huge loan from the bank.

Guys, there’s nothing wrong with dreaming big and planning bigger for your future. However, you should be really careful when making huge financial decisions, especially when they involve a bank lending you alot of money. In my opinion, I don’t think Randy and his wife should get that loan for several reasons. First, they’re still paying off some debts from their wedding. Second, both of them don’t have stable jobs. Third, they don’t have any other source of income, and lastly, it doesn’t seem good to start a marriage out swimming in debts.

Loans are so tempting. Been there, done that. I had a huge bank loan before and it took me 5 years, which actually felt like 50 golden years, to pay it off. At first, it makes you feel like you have a lot of money. It gives you a false sense of pride that you can afford anything that you want. But after a couple of months when your money starts to run out, you will start to feel the pressure of paying it off monthly. And by that time, it’s too late and you realize you’re trapped and that you have no other choice but to deal with it for a couple of more years or worse, for decades.

I believe that there are other better alternatives out there that could save Randy and his wife the burden of being buried in debts. They could try to live within their means or just make some sacrifices for a little while to save up some money.

To help you start 2017 on the right foot, here are some decisions that will keep you out of trouble and will lead you to a more promising year.

Sort Out Your Priorities

Obviously, the most important and most urgent things in your life should always come first. I know that it can be difficult sometimes because of competing responsibilities and multiple priorities. However, this is exactly where getting organized and setting healthy boundaries come in.

For example, when you’re having some quality time with your wife one sweet weekend after working you’re a** off on a project for almost an entire month, it’s only fair to turn your phone and other work-related gadgets off so that you can give her your full and undivided attention. Remember that your marriage is important too so focus on getting back to loving each other instead of worrying about anything else.

Be Accountable to Yourself Financially

To know where your money is going, make a personal budget and keep track of your expenses. Live below your means so that you can start saving up for your retirement, emergencies, and other financial goals you may have. Also, avoid mindless spending. Don’t be overly confident in using your credit cards and in applying for loans.

Writer Camille Laurente suggests using these 4 money saving tricks that won’t make you feel like you’re on a budget.

Invest in Your Well-Being

Investing in your health is one of the wisest and most empowering decisions you’ll ever make in your life. Aside from increasing your longevity and productivity, it also makes you feel positive about yourself, improves your relationships with the people around you and sharpens your ability to handle the ups and downs of life.

To help you pursue a healthy lifestyle, check this out “4 Ways Boosting Your Immunity Extends Your Life.”

Practice Humility

We are living in a world full of overconfident people, who think very highly of themselves, posting selfies from different angles at least 3x a day, going Live on social media for at least 10 minutes doing absolutely nothing but showing their faces, putting up status updates on Facebook to show off their new gadgets and their latest luxurious vacations including the expensive meals they had for breakfast, lunch and dinner. I find it so disturbing to see these kinds of things every day so I ended up “unfollowing” and “unfriending” some people I know.

I think many of us have to be reminded about the importance of humility because obviously it’s not in their vocabulary or they have an incorrect view of what confidence truly is. Knowing the difference between confidence and arrogance could save you from the trouble of losing friends and looking really stupid. Not to mention help you from wasting money too.

This 2017, let’s make a conscious effort to become better, wiser and more sensible people. Avoiding being an arrogant, conceited jerk and live a humble life. Free yourself from the need to impress the people around you, to be right all the time, and to get ahead of everyone. Instead of always trying to prove something, offer something nice and meaningful to others or give them something that can enhance their life.