As the year 2024 comes to an end in less than a week, it is imperative to evaluate your financial life to know how far you have performed especially in the area of tracking your expenses and paying up your debts.
Remember, it is important to start the New Year on a clean financial footing so as to have peace of mind and also set up attainable financial goals for Year 2025 appropriately.
Since the yuletide period is associated with expenses, it is imperative you try as much possible to spend within your budget or earnings.
Avoid overspending while trying to impress your family members or associates to avoid financial regrets once the celebrations are over.
Those who fail to plan their purchases will certainly spend more than what they budgeted for and may in the process incur debts which is really not good to end the year with.
It is quite true that survival has become a herculean task for the masses owing to the unfavourable state of the economy.
Besides, the persistent rise in prices of commodities caused by unending inflation has continued to inflict untold hardships to the citizenry, a situation that has put so many of them under financial heartache.
Likewise, it has seen many people living a life of debts because of so many bills to settle which their monthly take-home can hardly take care of.
Anyway, debt is not a new thing, but a way of life and has helped a lot of people to keep going financially.
But then, come to think of it, debt can both be good and bad; good debt at times is used for a long-term goal. Besides, it can be a very helpful financial tool to do things that will enhance your finances.
Many people seemed to view good debt as a necessity, particularly if they have a good project that will improve their financial life but lack the requisite funds.
Bad debt on the contrary, makes you to brood over the compulsory interest payments you have to pay especially if you are doing nothing to augment your income.
With no additional source of income to pay up your debt quickly, there is no way you are likely to live within your income but to keep borrowing to get through the month.
Regardless, of your financial situation, it will be more beneficial to experience financial freedom because being trapped in a debt ties down your money.
The constant stress of accumulating debt can also damage your work, health, and relationships but liberating yourself from debt will make living worthwhile.
However, the following tips will help you to see the need liberate yourself from debts:
Financial Freedom
Being in debt brings about perpetual fear particularly if it cannot be serviced as at when due.
One of the nastiest things about being in debt is the risk attached to it especially if you have nothing to fall back on. For example, if there is no emergency savings, for job loss, or medical crisis, payment of your debt becomes a problem.
But being debt-free, take away these risks because it creates room for proper financial planning which involves creating a budget and with it, you do not need to fret about a single regrettable event ruining your financial and personal life.
Good Job opportunities
Being in debt can also hold you back at work. Fears about money or repayment of debt can cause sleepless nights which in turn affects your productivity on your job the following day.
Paying off your debts makes your job more satisfying. You feel a lot more motivated to put in your best since you are sure of getting your money in full at the end of the month rather than spending it on debt payments.
And if you find yourself ensnared to a job that is not satisfying because you need to take care of your debts, paying them off liberate you to look for a more better and rewarding one.
Reduce Stress
Paying up all your debts is a big relief as financial burdens are being lifted off your shoulder.
Also, you are no longer under undue financial pressure as you can now dedicate more energy to your work and family. You can sleep comfortably because your mind is at rest
Mind you, living with debt is a big stress such that you are constantly disturbed of how you are going to offset it to avoid embarrassment from your creditors.
Enhance Self-Worth
Being in debt can rob you of your self-esteem especially if the wherewithal to pay back is not there.
Most people with debt frequently go out of their way to live a false life, claiming what they are not financially which at the end leads to their downfall. For example, these set of people own beautiful houses, exotic cars and wear beautiful clothes but their financial life is nothing to write home about because of the huge debt hanging on their neck.
But being free of debt can boost your self-confidence, enhance your financial life which automatically earn you respect.
Sound Mind/Health
When you pay off debt, you feel better physically and mentally because worries will certainly disappear or stop. You will be free from constant headaches which prevent you from sleeping well.
With better sleep and resistance, you are certain of sound mind which brings about good health. The stress debt bring can harm your body as well as your mind.
Besides, persistent stress can also limit your immune system, putting you more at risk for infectious diseases, such as colds. Also, money qualms can keep you awake at night which may further damage your ability to fight off illness.
Ease Financial Worries
Getting out of debt will ease your pain or financial worries such that you will be able to plan how to be financially independent.
Findings revealed that debt can cause physical pain and the less debt you have your thinking on how to clear the debt will lessen. But paying off your debt will certainly reduce your pain and aches.
Ability To Save
When you are in debt, saving becomes a big challenge as payments on your debt make you to lose grip of your money.
But, if you can endeavor to clear your debt on time, you will have money to save every month and also you will be free from financial hassles.
Render Financial Assistance
Paying up your debt makes you free from financial bondage and gives you the ability to help others that are in need. For example, you can assist a family or friend in need of financial assistance to get through a tough period knowing full well that you are not indebted to anyone. But if they are struggling with debt, you can narrate your experience to them and help them to get out of it.
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