The title might seem a bit ironical with the context of the rest of the posts where all i have written about is to invest the savings.But,let’s identify a termite which if not taken care of, will neva allow us to reap benefits on our investments-no matter how much we research:-)
Its time for formally introducing this termite–Debt…Debt here means “udhar” in desi terms:-)
Now,I don’t borrow from friends and i hardly owe any1 money.But,stop a minute.aren all the villians good at disguise. So,is Mr.Debt–and belive me,a very good at it.
The most generic avatar of mr.debt is CREDIT CARD.How???
Isn’t a credit card a god send angel which allows us to get by our not so rich days..At least,i think so.
Now,i am no anti-credit card bystander here,but i might have to play the devil’s advocate here.
lets take a personal example to understand why we need to take caution before flashing our card.
I generally keep a vague idea of how much money i spend a month and account for the amount of money i can safely put aside for investing in the various tools i discussed in the post.
Now,with the advent of the credit card(s) due to the best credit card offers by the banks,life suddenly became more luxurious to say the least.But,what i couldn’t account is the fact is that the credit card amount keeps piling up all the time which initially i could never account for properly.Paying my credit card bill was always the last thing in mind,since it was always a 30 day far period:-)
But,this is where things go haywire,if we get reckless which at least i did.
So,please get a hold of your credit card expenses and try to clear the debts if any before we put any amount aside for investing
The various things to a debt free life is:-
1. Try to analyse the credit card bills by looking at the past bills.
2.Based on above,try to set a virtual limit on your credit card expense,or better have the bank give u a flexi limit decided by u:-)
3.Clear any pending emi’s on the card or any bank loan,with the extra amount saved for investing.
and there are many more which i will keep putting across with time.
4.You could also pick up pointers from Christian Debt Consolidation
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Till then keep savings,keep investing but get Debt Free first