Wouldn’t it be nice to enter the year feeling light as a feather because you are debt-free? A fresh year, a fresh start, right? It’s not going to be easy to achieve, but with a few basic steps, you can get off to a flying start. Financial freedom isn’t just about making more money – it’s about how you manage what you already have.
This generally means avoiding loans as far as possible. However, if emergencies rear their unpleasant heads, you may have no choice. Regardless of how you got into debt, you can free yourself from it. Here are four financial hacks to help you start the new year debt-free.
Get Professional Guidance
Don’t expect yourself to resolve your financial dilemma like a professional when you don’t have any of their training or knowledge. Many people assume that seeking help with debt management might exacerbate the problem because it’s a paid service. However, this is not the case. You will be paying a professional organization to help you streamline your debt management system and reach agreements with the parties you owe to simplify and reduce your repayments.
You may also be able to find a mentor who can help you on a pro-bono basis. However, it’s important to keep in mind that their assistance likely won’t be as personalized or in-depth.
Practice Restraint During The Festive Season
As the new year approaches and the festive season gets into full swing, it’s tempting to overspend and forget to honor your relationship with money. Vacations, Christmas, New Year, and all of the celebrations that go with them can put a tremendous strain on your finances. Opt for simple back-to-basics handmade gifts and connecting with people by spending meaningful time with them.
Don’t add to your financial burden to prove your love for others – there are many ways to express feelings that require no financial outlay.
Reduce Your Rent For December
Rent is the most expensive item in many people’s monthly budgets. At the end of the year, with so much financial pressure, not having to pay rent would be ideal. You could use the money to pay off that last credit card bill or start the new year with a positive bank account balance. No more Janu-worry. How? Simply divide your monthly rental by 11 and add one 11th to each month’s rent throughout the year. Come December, and you’ve already paid for it.
Try The One-For-One Practice
This is an exchange agreement you enter into with yourself. It helps to declutter your life and ensure you only spend money on items you need. Whenever you buy something new, you have to sell something old. This trains your brain to have self-control and make wise decisions. It’s said to be a cure for impulse buying, so if you battle to keep your spending in control, this may be the perfect remedy!
Changing The Way You View Money Can Empower You
Many of the world’s leading financial gurus talk about changing your relationship with money in order to attract wealth into your life. It sounds far-fetched, but there is considerable truth to this ideology. When you change the way you view money, you change the way you work with it, which is the ultimate key to staying out of debt and making smart financial decisions. When you view money as a tool for empowerment, you will use it accordingly. This grounded in psychology and supported by research. So, love your money and make it grow!