Money is the thing that everybody lives for. It’s unavoidable to operate any other way. You can’t live without it. When you have it, life is endless amounts of fun. You can travel the world on a whim, buy anything you want, you can get education without worrying about being in debt, and you can go through life being carefree in ways that most of the population doesn’t get to do.
However, if you’re not smart with the money that you do have, you run the risk of going broke. If you’re an entrepreneur or somebody who spends money they don’t always have in large quantities in hopes of turning a profit, you might even find yourself broke to the point of even having to file for bankruptcy. Nobody wants to find themselves in this situation. If you’re worried about being broke throughout your life, here are 3 ways to avoid it like the plague:
Live Below Your Means
This is lifestyle that a lot of people preach, but actually living it is a different matter. However, if you want to avoid having no money in life, you should really train yourself to live by this principle. You might have eccentric taste and you might like to spend money, but if you live below your means and spend less than you make, you will have enough money set aside that if an emergency comes knocking you won’t be stressing out about how you’re ever going to get yourself out of the hole of debt.
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A good way to practice this is to put aside at least 20 percent of what you make every paycheck for a rainy day. Buy a smaller house, drive a used car, or none at all if you can swing it, opt to eat meals at home more often than not, and just watch your pennies.
Make A Budget
Budgets are the ultimate sign that you’ve entered into adult life. When you’re young and you’re living with your parents or are living off of scholarships at college, you don’t understand just how many bills you have in life. When you’re not looking at where every dollar of your money is going, you turn to your bank account to pay a bill and you find you don’t have enough funds and you don’t know where the money went.
A budget will help significantly with this. Keep your receipts, take a good, hard look at your finances and work out how much money you can realistically spend. Have categories. Once the entertainment budget is zapped, you’re done for the month. It’s hard to live by and it can zap the fun out of things at times, but if you don’t want to be broke, you have to budget your money.