The thing about debt is that you don’t realize it, until you’re in the pit. And once you’ve spiraled down the rabbit hole, it’s a life draining challenge to get out of one. When you’ve debt on hand, you need to make drastic lifestyle changes to the pressure of earning more income. 

Why is it important for you to stay financially protected? How do you ensure you stay away from debt traps? Each path to paying debt is tough. To ensure you are financially protected we’ve narrowed a few and easy to comprehend ways. 

1. Don’t be trapped in the earning and spending cycle.                          

Whether it is the current times or you time travel to the monarchical times of the 1800’s. One thing that you will observe commonly in the human race is the need to earn your keep. Earning is tough; sustaining that earned money is even tougher. What you can do to better your financial future is to ensure that you don’t get trapped in the earning-spending or spending more than your earn cycle.

 In current times more people are finding joy in instant gratification. This may be a good measure of happiness in the short term, but it results poorly in the long run. This is why it’s important for you to focus on your cash flow, on ensuring you save as much or more than you spend. More importantly don’t make the money mistake, where you drain off your savings in the bank. Instead invest them wisely to optimize growth through the magic potion of compound interest.

2. Focus on money health

If you can’t afford it now, you don’t need to buy it now. One key aspect to money management is avoiding debt traps. Another aspect is ensuring your expense sheet is always cash flow positive. Few ways you can attain good money health are 

•     Budget your buys 
•     Accomplish needs and then jump to wants 
•     Don’t pick up another credit until you’ve paid one in full
•   Turn wants into short term and long term goals and financially plan to achieve them step by step

3. Always have an emergency fund you can rely on 

There’s nothing like having a good friend or companion to shoulder your pains, problems and share joy. An emergency fund is that friend in need. When in trouble, medical emergency or an unpleasant situation such as job loss – having a reserve fund makes life easier and keeps stress at bay. The right way to go about it would-be to save at least 6-12 months of expenses for rainy days. This will protect you from drowning in the deep waters of debt. 

4. Consult a trusted expert

People are often under the illusion that they know it all and can manage it all. Well that may be partly true but not entirely. Technological advancements soaring at light speed and economic uncertainty and volatility on the rise. The only thing constant is the need to keep up with changing trends and necessities. Experts bridge the gap between, knowledge, skill, and latest know how. Trust an expert to guide you towards attainment of a common goal – To stay away from debt, and eventually graduate to financial freedom.