Who can avoid debt?
Even rich people are many who have debt. The difference is they make productive debts that are beneficial for the increase in assets.
But different from those who enter the pension but are in debt? There is no productive asset but the debt must continue to be repaid.
For those who may be experiencing the same thing, and there's still time to get it done because you're still working, some of these basic things you should apply.
1. Limit your monthly needs based on your salary
Planning a retirement is not just increasing income for old age but also must take into account the amount of needs that must be met.
If we want to meet all the necessities of life then there will be no end, because human nature is never satisfied and wants many things.
For that you must be sure how much your monthly monthly needs each month. It's important that there is a section to settle your debt from earnings while working.
It can solve the debts with severance pay, but it must be remembered the real severance is your monthly income paid in
early. So when it's exhausted, it will run out of your life as well.
2. Purchase and Sell a Used Asset
Sometimes people impose their ability to buy goods that cost far above their reach. Having assets should be budgeted in the financial life, because without assets will not accumulate our wealth.
But if the assets are purchased by force and spend the budget, maybe think again.
Good stuff is not necessarily a new item, and used goods are not necessarily bad goods. Used goods for us may be "gold" nagi others. So take advantage of your used assets in lieu of your new asset purchase. And new assets do not mean buy new.
3. Never Underestimate Debt
Big debt always starts with small debt that is not managed wisely.
Therefore, immediately pay the smallest debt so you can focus on doing work and increase income.
4. Avoid Excessive Consumer Lifestyle
Excessive consumption can be a trigger of debt continues to accumulate every day because income is not ready to accommodate an excessive lifestyle. You have dozens of years of work, lifestyle that may be wrong you have done.
Will that pattern keep you going until retirement? Meaning you will owe again when you retire? Should not !!! Therefore always try to style in accordance with the contents of the wallet only. Do not exaggerate.
Remember our golden days in the company where work is going to pass to a new profession. And always in the new profession there will be sacrifices that you must do if you want to succeed.
If the debt has already strangled the neck and in a few months you will enter the pension, immediately do the calculation of assets owned and as much as possible to pay off quickly so that the debt interest does not swell. Then start changing the lifestyle to be simple.