Aside from reading and following some of the tips in becoming financially independent, I also learned to keep on following a certain a habit. As I developed this habit of mine, it totally helped in gaining my financial independent.
Here are the 3 habits that made me achieved my financial freedom from credit indebtness:
1. Keep one credit card as a transaction tool.
You don’t have to keep a lot of credit cards for many transactions right? When I did keep a lot of credit cards in my wallet, in time, it made it difficult for me to pay for all the expenses. I lose control of my expenses as I keep on depending on my card for many transactions. It always tempted me to spend more. It is very tempting. In time I got into a huge debt and it was not very pleasant. Once credit card is already more than enough to fulfil your needs, no need for two or more. Whenever you spend, you will only increase your debt. And once you used up all the limit in the card, you will then be forced to pay up for the balance before using it again.
2. Make a cash flow budget after every pay check.
After experiencing a very unpleasant experience of getting in debt, I learned to take control of all my expenses and transactions. I made a cash flow budget after every pay check that I got. With this, I can pay up all of my monthly bills the first and then the amount of money left will then be available for savings, or may be a little spending spree. When you are already able to pay up your monthly expenses, you will no longer have to worry then about these expenses. This method is working well with me as it has given me much information as to how many more amounts left that I could get to save.
3. Save money before buying or taking advantage of credit promotions.
The best thing to make a habit of doing is to save before purchasing. But then, this is not always possible. I exploited a credit promotion at 0% and took this time lap to save and pay the total amount only at the end of the promotion. Because of this, it gave me the possibility of enjoying the purchases I have made while saving for it. Another way that I did was buying using my credit card and transfer the balance on my other credit card presenting promotional rates. The interest rate on this one is not eliminated but it does remain reasonable. These two methods work well with me, but it is much smarter to avoid traps and not abuse it because you will likely to become indebted again. It is better to avoid earlier than later.