1. Assess yourself—and your pocket. Before you spend or buy anything real expensive, you should first take a look at your finances and assess it objectively. Ask yourself if you are making enough to support your current spending habits while paying for your outstanding financial obligations and saving up for the future? If not, it is best to adjust your spending and try to save more.
2. Pay off your cards. The primary culprit that makes people get deep in debt is credit cards. Your highest interest rates is most probably coming from your credit cards and by paying it off on time and completely, you will be free from unnecessary debt.
3. Settle your other debts and loans. Before you can be totally financially free, you need to settle your other debts first. It will not only lift your financial burdens, but also strengthen your reputation.
4. Stop waiting until you’re retired. Eventually, you will get old and if you don’t start saving today, you will later regret it. Do you see yourself working until you are old? That will happen if you don’t prepare for your retirement beginning today.
5. Be realistic. You want to be rich, don’t you? Maybe you also want others to see you as one, pushing you to get things that will show them you are, not considering the real status of your finances. You need to stop doing that or else your debt will continue to rise as you try to live a life more luxurious than your paycheck can handle.