Two Key Habits to Pick Up For a Debt-Free Life

When it comes to handling finances, people usually say that you have to hone in on the process and make it your first and only priority, especially when it comes to the paying off of debts. Another piece of advice that financial gurus love to dish out whenever they can is “the sacrifices that you make now are going to help you reap the rewards of tomorrow”.

What are we trying to get at here? Well, while it may seem that these pieces of advice make sense (even though they’re really annoying to hear), the truth is that they are just cookie-cutter sayings that don’t work for everyone who hears them. 

Why financial advice doesn’t always work

Would telling someone who has a lot of things to pay for or is neck-deep in debt to “put aside a dollar a day to turn their finances around” actually make any sense? Of course not! The main lesson to take home from all of this is that not all financial habits will work for everybody. However, some of them will work for anyone willing to do as they’re told. Most pieces of financial advice fail simply because they don’t apply to every person or situation, especially when these “tips” tell people to put their plans on hold for an excruciatingly long time. 

The importance of developing good habits

Although it might seem like no piece of advice can ever solve your financial problems, there’s actually a great way to help ease the burden of your debt: developing good financial habits. Compared to pieces of advice, habits work better because they’re much easier to maintain in the long run, no matter how tough your situation may be. Additionally, habits are more effective because they may sometimes feel like a reward instead of a punishment. That means sticking to them won’t be too difficult.

Curious as to what financial habits you should be picking up? Here are a few essential practices to stick to in order to pay off your debts and get you one step closer to financial freedom:

1 – Budget your monthly payments

Of all the possible mistakes that people can make when trying to get out of debt, the worst one is the simple error of not setting aside part of their income to pay off their debts. Debts aren’t as important or urgent as utilities and food, but not managing them right can lead to more problems down the line. One of the best ways to start paying your debts is to use a “zero-sum” accounting or budgeting approach. It allows you to create room for debt payments while making it easier to track where your money goes.

2 – Be patient

The only quick thing that should come with anything related to money is losing it, and rushing the “financial salvation” process can cause you to make that mistake. Dealing with debt is a marathon, not a sprint. Trying to get it over with as soon as possible will cause debt fatigue, which can lead to emotional and mental stress. By embarking on a journey to get yourself out of debt, you’re also asking yourself to be more determined and patient. That means that you’ll also have to go for more sensible options at the bank when trying to pay the debt off, such as long-term low-interest payments.

DebtHelpers.ca can help you find relief from personal debt.  Get in touch with us today to see how we can help!