INCREASE YOUR SOURCES OF INCOME: This scheme is as old as the time of the development of commercial. Making more money is not easy, but when you widen your business outlets, there is bound to be a rise in incomes. There is no compulsion in any particular type of business you engage.
However, you must seek some understanding of the endeavor before dabbling in. Liken the scenario to the difference in the volume of water received when a single tap is opened to that when about four or five are opened simultaneously. More incomes translate to higher spending capability and less or no indebtedness. Surplus incomes enhance savings.
REDUCE WASTEFULNESS: There is no other habit as bad as wastefulness. Over spending and extravagance are other habits tantamount to it. Experts say that debt occurs, often, as a result of being wasteful. You should use just enough and desist from being extravagant. Save the rest for future usage. There is wisdom in that.
To reduce or avoid debts, do not over spend. Do not go to buy what you do not need, at least, for the immediate and the foreseeable future. Put the excess money into saving.
SET PERSONAL FINANCIAL GOALS AND MAKE BUDGETS: Who ever fails to plan; plans to fail. Set realistic financial goals and spending plans. Learn to make budgets in line with your income and make all possible effort to abide by it. Being within a specific budget regime helps you prevent unnecessary spending.
Goals are meant to be achieved, although, some could be hard, but at the least you will know that you have given it a trial. It helps you become more focused and determined. Budgets mean you will do just what is necessary. When there are excesses, you can save and forestall running into debt.
KEEP TAB WITH YOUR PROGRESS: There should be a feedback mechanism in your planning and budgeting scheme. Do checks and balancing regularly and periodically. It affords the opportunity to evaluate your progress. Practice, as it is usually said, makes perfection.
If you are faithfully interested in riding yourself of debts and improving your positive balance sheet, you must monitor the adherence to your budgets and the focus on your goals. Take decisions that will make adherence easier and realizable.
BE REALISTIC; KNOW THAT THERE COULD BE CHALLENGES: Life is not a bed of roses. Wishes are, certainly, not horses. That is the reason why beggars are possibly unable to ride. There are obstacles and challenges that could stand in your way against adhering to your scheme.
The main reason is that other unavoidable responsibilities can spring up. There are ups and downs littering the paths of life. That is the more reason for making realistic budgets that can take care of all possible exigencies. You should anticipate and be ready for life’s ups and downs. There may be some emergency funds set aside to take care of these.
GET KNOWLEDGE; BE KNOWLEDGEABLE: Make effort to acquire knowledge in whatever necessarily available means. Modern economic situations demand learning in constancy. Read books, listen to lectures and talks, and ask questions about issues and topics that bother you.