4 Main Benefits of Living Debt-free

21 July 2022

4 Main Benefits of Living Debt-free

For some people, a life free from debt is an ideal life. Indeed, without debt there are 4 main benefits that you can enjoy. What are they?

Living Debt-free, The Benefits

1. Less anxiety

Many things can make us anxious, but debt does not need to be one of the causes. By living debt-free, anxiety is reduced. You don't need to think about how to pay off debt, especially if the debt is quite large and your budget is tight. You also don't need to think about when the obligation to pay debts can be completed.

2. Freedom to choose how to use money

When you don't have an obligation to pay off debt, you get more freedom in how to use your money. If money is not used to pay debts, then what should you do? Will you save it to achieve financial goals? Will it be used to build an emergency fund? This decision is up to you.

3. Increased financial security

An unexpected event or emergency can come at any time. When it happens, an emergency presents its own challenges, especially if you don't have an emergency fund and it's coupled with looming debt. It's different when living free from debt. You can focus on dealing with an emergency without worrying about unpaid debts.

4. More savings

As stated briefly in point 2, when you don't have debt, you can put money into savings. This way, you will have more savings. If you already have an emergency fund, you can save for other purposes, such as saving for retirement, saving to buy a house, saving for your wedding, etc.

Budgeting Discipline, the Key to Avoiding Debt

There are many causes for someone to have debt, for example consumptive behavior, FOMO and lack of awareness to manage finances. Budgeting discipline is the key to avoiding debt.

By allocating funds for each need, you know where the money is going. Of course, the portion of the budget must be adjusted to income and cannot all be allocated only to fulfill various wants or desires.

When budgeting, it is important to make sure that there is money that goes into savings, especially emergency savings. Having an emergency fund saves you from the possibility of going into debt when faced with unexpected situations.

And, the money that has been separated for self-indulgence may not be added again when all of it has been used up. You have to patiently wait until the next month when you have more money to distribute for every need.

To make it easy and practical, make use of the Jago Pocket for budgeting. What needs do you have? Are there many needs to be met? You can create a lot of Pockets. In this way, both expenses and savings can be monitored simultaneously in one application, the Jago application.

The Jago application can be downloaded here for those who don't have it yet. After downloading, complete your Jago account registration.

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