5 Useful Tips to Minimize Your Debt
4. Invest wisely
So maybe you do not want to make the extra effort of a job, or change your lifestyle habits. What you can do at the very least is invest wisely. This is very different from just saving some money and keeping it with you at the end of the month for future use. This is about growing your savings, so that they can come in handy for a rainy day. If you have a small amount of your earning in a secure fixed deposit, or stocks or mutual funds, you will be able to create a corpus that can bail you out. The power of compounding will work in your favor and you will be able to multiply your savings, no matter how small they may be into a substantial nest egg.
5. Fix deposit your income
Many can survive on the bare minimum, however, having ready cash spurs us to spend more. One of the options to reduce spending and consequently the debt is to remove the money from your sight the minute you lay your hands on it. This could be in the form of a fixed deposit you may start in the bank the minute your salary gets credited. This way you have a smaller amount of money in a ‘liquid’ form, i.e. that which is available for you to spend. Your lifestyle requirements and other needs will automatically calibrate themselves to fit in that amount.
