A strategy for financial freedom

Most people dread accumulating crippling financial debts, especially if they’ve grown up seeing family and friends struggle to keep up with their own debt issues and the tangled mess involved in resolving them. Speaking as someone who’s already trying to keep the college loans down to a minimum, it can be quite a challenge to merely avoid getting into monetary debts.

First off, I’d like to go on the record that leveraging debts here and there is not necessarily bad. You’ll often need lines of credit to start or grow a business, buy a house or car, or cover for other unexpected expenditures without touching your savings. That said, being able to effectively manage your finances takes some of the hassles of paying debts.

A crucial part of going debt free is to pay close attention to and take control of your accounts. It (rather literally) pays to know where your money is going, and ensuring that the money is spent wisely is critical to avoiding the accumulation of debt. If you have debts, part of your budget should be committed to paying as much of it off as soon as you can. Having savings accumulated even as you pay off debt also helps take some of the pressure off and can be useful to pay off the bigger ones.

Close attention to personal finance also instills the discipline needed to avoid unnecessary expenditures. Treat yourself responsibly; if you really want something that’s not a dire need, it can wait until you pay for it in cash. Those ridiculous shopping sprees and restaurant hopping weekends should be kept to a minimum.

I’m Michelle L. Marque reminding you folks at home that the best way to live a financially stable life is to start early. Follow me on Twitter for more on my thoughts on everyday finance.