4 Strategies for Staying Debt-Free

In these turbulent financial times, debt can sneak up on anyone, all it takes is an emergency expense, a missed bill here or there, and suddenly you realize that your financial footing is not as secure as you thought. Yet, you can remain on stable financial ground with some awareness, a little proactive planning, and smart strategy implementation. The team at Watkins & Co is here to provide valuable information on how to stay out of debt, along with expert guidance and financial planning services in Mississippi to keep you out of the red.

Smart Strategies for Avoiding Debt

Why does staying out of debt matter? Doing so provides you with valuable peace of mind and a far less stressful financial life. By building credit and saving, you’ll have greater access to future financing and the ability to build wealth rather than simply breaking even. It means that when the time comes to make big steps and invest in your life goals, you’ll have the ability to pursue those dreams – buy a house, start a business, take an important trip, support your child in college. So how do you accomplish staying debt-free? 

Stick to a Budget

Controlling where your money goes and providing a purpose for every dollar can help you become more familiar with where and how you’re spending your money. Doing so can help you identify potential problem areas and help you recognize the red flag of debt before they become problematic. Watkins & Co can help you create a custom budget based on your financial objectives, lifestyle, and income. Our financial advisors across Mississippi will help you track spending, prioritize spending, and make the most out of your money.

Constantly Track Your Spending 

It’s important to be aware of exactly what you’re spending in real time. Small, seemingly harmless spending in daily transactions can quickly add up and cost much more than anyone expects. Watkins & Co can connect you with tools for tracking your spending in real time so you know where your money is actually being spent. This will enable you to make a conscious decision on where to spend and where to save.

Using Credit Strategically

Many a financial downfall is a result of accrued credit card debt. It is best to either avoid credit cards completely or use them to your advantage. The only benefit credit cards offer is the building of credit. If you do decide to get a credit card, be sure to only allow an amount to build that you can quickly pay off. Always pay more than the minimum balance so that you can avoid interest build-up. Don’t fall for the “buy now, pay later” concept, especially for non-essential items. This is a trap that can quickly end in financial ruin. 

Establish an Emergency Fund

An unexpected bill or emergency is sometimes the tipping point that slides people into debt. Whether your car breaks down, you have a surprise medical expense, or you lose your income suddenly, the expense of such events can wreak havoc on your financial life. Having an emergency fund can save you from sinking into the red. How much should you save for emergencies? It’s a good idea to have 3-6 months of living expenses saved. Watkins & Co. can help you save this protection gradually, showing you ways to save small amounts based on your current cash flow.

Best Financial Planning Services Near Me

For the expert financial guidance you deserve, visit us at Watkins & Co. We serve individuals and businesses in Flowood, Madison, Brandon, Jackson, and beyond. We’re here to help you stay out of debt and maintain your financial freedom!