The lack of debt … is a noble fortune !! Easy way Try to explore that in our own accounts, there are more assets or liabilities. If we still have to pay various interest Both from home loans, car loans, interest on credit cards and other debts that show that we still have liabilities But will it be a lot? We should compare to the assets we have, such as cash or portfolios. And see if the debt ratio is greater than our assets or not If the debt ratio is more than that We have obligations to bear risks. Therefore may cause the freedom of our lives to disappear Because of the burden that we have to bear Until unable to do anything
The freedom in this article does not mean financial freedom. But means freedom in life With financial freedom, Thui had written an article to read. Can go back and read back together
Pui Tui wants to think easily. Imagine that if we work each month with exhaustion Get a certain amount of salary, such as 50,000 baht, but we have to take the money to pay most of the debt, such as a car loan 15,000 baht and another part to install a house or condo, another 20,000 baht, so we will have the remaining money to spend personally 15,000 baht per month only In order to live enough life with various daily expenses Thui thought it was simple. One month, the average amount can be spent about 500 baht per day. Or fitness, fitness Expenses Another unexpected
If we want to go to live like traveling abroad Or provincial Therefore almost impossible Or who is eating Or if the family is sick And cannot use the right to withdraw anything So then you can’t do what you want. Due to limited budget per day!
Debt burden each month Is a brace that makes us free in life Therefore, if wanting to have a free life Let us manage these liabilities well first. The first priority is to adjust the spending behavior. Start from where you first And then go to the family. The main steps include
Debt management Will have no effect If we don’t know how much each month’s income is, the simple but important way is to record income. Categorize well Which one is a regular expense Which is the variable expenditure And concluded each month that Our expenses are gone with nothing that is not necessary. And we will know that Oh, the unnecessary expenses may be more than necessary.
Divide the debt group. See how The liabilities we have Is a short-term debt or long-term debt The simple dividing principle used is that if the debt burden is less than 1 year, it is considered a short-term debt such as a credit card, but if the long-term debt burden is more than 1 year, such as home or car debt
Let’s compare that. How much is the interest to be paid, such as a 20% credit card interest rate per year, a 5% car interest rate per year? How much do you need to pay per month? Compared to monthly income Tui hyung told us to try to close the high interest debt first. If there are many debts with equal interest rates To manage all small debts first In order to release each type of debt
If it is a long-term debt with high interest But can relax to reduce the flower We should hurry to find the money to cover to reduce as early as possible. In order to pay interest as little as possible Or another popular method called refinance
Debt from high cost to lower cost Which is often used in property loans that interest is often cheaper in the early years of installments And interest can be floating in the long term Did you know If borrowing to buy a condo worth 2 million baht at an interest rate of about 7% for a period of 30 years. Therefore, the total burden of interest must be paid 2,790,000 baht. Oh, the interest is more expensive than the condo value! So hurry to manage the debt to a minimum, the most sensitive will have the money left to do anything that wants to do something else
If we know that Like to use the future money in advance and be the person who likes to pay the minimum Must compare the character by urgently Because the interest from credit cards is very high If the habit cannot be changed, the card must be replaced. Change from credit card to debit card. Because it is the amount that really needs to be spent when buying something, must think first Consciousness Satang will increase by itself.
By summarizing debt management to make life free Not trapped in debt Ask yourself first. We need or just want if needed. Came to think about the ability to pay off debt, usually in the concept of financial planning Debt management or the ability to pay should not exceed 30-40 % of income each month. In order not to be too burdensome to the freedom of living, other aspects are summarized as important principles. Do not create additional debt, reduce expenses, increase income. And have discipline in debt repayment So before being indebted, think a little before planning every time. Will have the freedom to choose to live in other areas, some more or less.