With August lined up with several activities, you may be wondering how you can go through the month without going into debt. You have already made so much progress during the year that you wouldn’t want to undermine it by spending carelessly this August.
As good as your intentions to remain debt-free are, you need to put actions to words to achieve any tangible results. What are the steps you have to take right now to ensure that August is debt-free for you? Let’s dive in.
#1. Have a budget in place
Trying to have a debt-free August without a feasible budget is equivalent to trying to tour a city without a tour guard. The result is that you will most likely get frustrated without achieving any results. Go through your monthly income and expenses and find out if you can afford to spend a little more if you decide to adjust it.
Having a good budget will not only ensure that your status is out of debt. It is also a good practice that enables you to save more and build a strong financial future. Coming out of August free from every debt is possible if you make a deliberate effort to not only have a budget but to keep to it.
#2. Cut down unnecessary expenses
One of the factors that lead to debt is an increase in expenses without a commensurate increase in the level of income. You will need to make deliberate efforts to ensure that you cut down unnecessary expenses in August.
While it is okay to binge on your favorite food and expensive wine, and order take-out for your friends, it may not augur well with your finances. In August, you may opt for home-cooked meals instead of ordering takeout. Even while buying things, you may need to check other sellers just to be sure you are getting them at the right price.
#3. Avoid anything that will trigger impulse buying
You can’t have plans to stay out of debt and still buy every and anything you see. To have a debt-free August, you will have to decide that all your expenditure will be planned. This is where a budget comes in handy.
Having a budget goes a long way to constrain your spending to only those areas that are necessary. It takes a lot of discipline to resist the urge to buy that fancy clothes hanging at Walmart when it wasn’t captured in your budget. However, bearing the goal in mind, which is to remain debt-free, will help you to stay focused.
#4. Avoid borrowing
Borrowing provides a temporary solution to today’s spending while harming tomorrow’s income. To remain Deb free in August, ensure that you avoid every form of debt. You may also consider putting your credit cards away so that you don’t have to spend beyond your means.
Conclusion
Being free from debt has a lot of positive implications on not only your financial life but also your health. Freedom from every debt makes it possible for you to live your best life without having to worry about paying off debts.
