5 Reasons to Live Frugally Even If You Don’t Need To

Scissors  to cut  a dollar

Living frugally doesn’t always have to be a lifelong way of living. Some people choose to keep this lifestyle just until the credit card debt is paid off, or until the mortgage is fully paid. For the meantime, one will clip coupons and bring a packed lunch to work. Of course, while you can return to your old ways once your financial goals have been met, you can also choose to continue living a frugal lifestyle. Here are some reasons you may want to consider doing so:

1) You’ll stay out of debt.

Yes, living frugally allows you to get out of debt—but it also allows you to stay out of debt. Apply the lessons you’ve learned during the process of your debt repayment to build up your savings and continue paying off your bills in a timely manner.

2) You’ll be prepared for emergencies.

Being frugal with your money allows you to build up a decent emergency fund, which will come in handy when your car needs repairing, when your pipes are leaking, or when someone gets sick.

3) You can set aside money for your children.

You may have enough to pay off your bills this year, but how about your child’s tuition, wouldn’t it be great to start preparing for college? What about their first home? Put away money for your children’s future, and maybe even for your grandchildren!

4) You’ll be teaching your children an important lesson.

Living frugally will impart valuable lessons to your children. Don’t allow your children to grow up with an unhealthy attitude about money. Teach them to budget carefully, and to avoid making the mistakes you may have made. Teach them to avoid debt at all costs, and to only pay for things with money they’ve already earned.

5) You’ll have more room to give.

When you’re drowning in money troubles, you’re probably paying very little attention to those around you who may need a helping hand. Now that your finances are back on track, you can be more generous to those less fortunate than you. Even simply giving away product freebies or heavily discounted items you buy with coupons to those in need could really make a difference.

Once you’ve learned to form positive financial habits, maintain them. There’s no reason to go back to the way you used to handle your finances. You may never be completely stress-free when it comes to money matters, but preparing for whatever comes your way will definitely give you a lot more peace of mind.

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Life After Credit Card Debt -5 Tips for Remaining Debt Free

Nothing can compare to the sense of fulfillment and exhilaration you experience when finally becoming debt free. If you’ve managed to successfully and completely pay off all your credit card debts after an extremely long period of time—a very big congratulations to you!

Yes, you do deserve to celebrate a little after carefully handling every single dollar for many months or even years. However, keep in mind that although you are no longer in debt, remaining debt free is a completely different story.

Here are some useful tips on remaining debt free for the rest of your life:

1)  Stick to one or two cards.

While it may be impossible to completely stop using credit cards, the least you can do is have just one or two cards. Close your accounts if you find yourself constantly being tempted to spend more money than you can actually afford.

2)  Use cash.

You may have credit cards in your possession, but that doesn’t mean you need to use them. Always use cash to pay for your purchases unless using your card is really necessary. Keep your credit cards at home to avoid being tempted!

3)  Don’t spend past a certain percentage of your credit limit.

Commit to never maxing out your card again. Establish a limit to your credit card spending and stick to it. A safe bet would only be spending up to about 30 to 40 percent of your limit.

4)  Pay off your balance at the end of the month.

Only swipe your credit card when you are absolutely sure that you can pay off the entire amount within 30 days. This mindset may be a very difficult one to practice, but it is sure to keep you from going back in debt.

5)  Create an emergency budget.

One reason many people go into debt is because they lack emergency funds for when such crucial times arrive. Now that you are no longer paying off debt after debt each month, start working on beefing up your emergency funds instead. One easy way to build up your incidental funds is by setting up an automatic draft from your payroll account to your savings account!

As you are about to find out, life after credit card debt isn’t easy. Don’t get sucked back into debt, and don’t let all your hard work go down the drain! To remain debt free, you must keep making smart decisions and uphold your commitment at all times!

Photo Credit: iClipart

 

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