Golden tips and tricks to become debt free

Living debt free seems to be an impossible dream for most Americans.  That shouldn't be the case if you follow these 10 simple rules. 


I. Pay yourself first

Make sure you save a fixed percentage (10% or more) of your monthly income.  Whenever you get your salary check, pay yourself first.  If you get a wage hike,  use it only partially and save the rest.


II.  Stop using credit cards

Credit cards are so easy to buy stuff.  Unfortunately the interest rate you pay is huge.  In some cases you even pay twice the real price when you add all the interest.


III. Choose assets over liabilities 

Buying a large house is great.   Buying a smaller one is even greater.  A house can be an asset since you don't have to pay the rent.  Unfortunately the larger your house, the bigger the costs for renovation, property taxes and mortgage fees.  In such cases a house can become a liability. Also remember that cheaper, smaller houses are sold more easily since the number of potential buyers is way bigger. 


IV. Buy a second-hand car

Most cars lose a lot of their value in the first few years of ownership. Both new and second-hand cars depreciate, the rate of depreciation however is much greater for new cars.  Buying a used car will save you lots of money.


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V. Become a coupon checker.

Collect coupons to get huge shopping discounts. Nowadays lots of coupon checker apps are available on your mobile devices.  Use them.


VI. Shop smart

Never go to a grocery store or to a supermarket on an empty stomach.  Otherwise you'll end up buying way more stuff than you actually need.    


VII. Use a shopping list

Always use a shopping list.  This way you'll only buy what you really need. It's a very simple tip that will save you lots of dollars every single day. 


VIII. Stop smoking

Living a healthy life is also crucial.  A nasty habit like smoking costs a lot of money.   First of all there's the ever increasing cost of a pack of cigarettes.  Besides that smoking is linked to cardiac diseases and several cancers.  Your health-care costs may skyrocket.   


IX. Invest into stocks

A broad stock portfolio will produce better financial results in the long run, compared to bonds and fixed interest rate products.  


X. Budget planning

Make a monthly budget plan and stick to it.  Write down all your expenses and do some research.  What is really necessary and what is a nice-to-have? In other words: what unnecessary expenses can be dropped and turned into savings?