by Charlene C

Created on: October 25, 2009

You have managed to dig your way out of debt hell and now you want to avoid debt all together. Is that even possible? Absolutely. It will require two very important qualities, discipline and patience. The good news is that the debt noose is no longer strangling your finances. The hard part is to keep it that way.

Financial experts around the globe emphasize the importance of an "Emergency fund". An emergency fund is a fund consisting of three to six months of liquid assets set aside to aid an individual for those unexpected events in life such as job losses or a vehicles breaking down. By accruing this money you prevent yourself from resorting to pay day lenders and credit cards when unexpected expenses arrive.

Saving up for big ticket items is the best way to remain debt free. You may want new furniture, to take a vacation, or something really special for your loved ones for Christmas or birthdays. It is best to set aside money each pay check to save for these items. You will save money by not buying these items on credit and there is freedom in knowing that you will not still be paying on that Christmas gift well into June. Falling victim to debt can lead to sleepless nights and illness.

Planning and sticking to your budget is the best way to combat debt. Maintaining insurance to cover your home, cars, and health is also very important to maintaining debt free. Too many people are crippled by debt because of illness or a unforeseen destruction of their home or car. Maintaining the right amount of insurance can prevent you from slipping back into the debt trap.

It will take time and discipline to stick to budgets and patience to save up for the things you really want. There is a great deal of freedom when you are not over burdened with debt. The right amount of insurance will also bring peace when you are faced with one of life's curve balls. It is not the easirdy thing to do because human nature urges us to give into our impulses. Even as adults we want what we want right now. That is a natural feeling and it will really take discipline not to give into those impulses, especially when you have experienced those types of problems in the past. It starts with saving one day at a time.

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