Tomorrow’s Millionaire: Tips to Avoid Debt

  • by Rayna Karst
  • Nov 21, 2023, 14:00 PM

If you’re on a mission to be a millionaire, it’s crucial that you avoid debt as much as you can. That way, any extra money you have can go toward savings or investments instead of paying off debts!  

It takes discipline and perseverance– and you’ll have to make sacrifices. But living debt-free is possible with these 5 tips!

  1. Don’t buy it if you can’t afford it without a credit card. Credit cards can be useful, but they can also tempt you to buy things you can’t actually afford, pushing you further into debt. Don’t give in! A good rule is to only buy things with your credit card that you could also pay for in cash.

  2. Pay off your credit card as you go - in full. Keep your debt under control by paying off your entire credit card balance as often as possible – whether that be every week, every month, or even every time you make a purchase.

  3. Make a budget plan – and follow it. Money management is so much easier with a budget plan in place. Setting clear goals for where your money should go each month is a great way to help you avoid debts and cut unnecessary spending.

  4. Build up your emergency savings. It’s important to put money away for unexpected financial hardships. That way you have savings you can dip into instead of getting a loan or using your credit card. Try to have enough in your emergency fund to cover 3-6 months’ worth of expenses.

  5. Debt can be unavoidable at times! Pay it off as quickly as you can. Auto loans, student loans, mortgages, and other forms of debt are often unavoidable. Find a debt repayment strategy that helps you to pay them off as quickly as possible.

    Check out these tips to find a debt repayment strategy that works for you!