There are two ways you can buy something save up so you can buy it in cash or borrow it. It’s not an easy feature but we should all strive for not taking on any debt.
The only method to stay debtless is by promising yourself to never again take on a loan for things you don’t need. If there is a moment that you are doing fine save money for later. Want to buy a new phone or upgrade to a bigger car? Set your plan how much you need, by when and avoid paying extra due to high interest paying loans.
A man in debt is so far a slave. – Ralph Waldo Emerson
When you want something badly enough borrowing for it is easy and give you instant gratification. However the thing we don’t think about is how much it costs to be borrowing the money. The money you spend on interest has an opportunity cost. Instead of paying for the profit of the company you could be using the money yourself. Not having to pay interest allows you to start saving for you next purchase.
There are two exceptions where you could go into debt for. Keep in mind that whenever you take a loan be sure to check if you can maintain the debt without having it too much of a pressure on your life. Some education can be worth it to take debt on. However it should be education that really gives you a boost for your carreer. The second reason for having debt is for purchasing a home. We all need some place to live in. Homes are so expensive that it can’t be done without at least a small debt.