Research by the Numboh has shown that twenty percent of young people between the ages of 18 to 24 have to deal with outstanding bills, fines that still have to be paid and payment arrears. Do you want to prevent that you get debts and that you will become one of the twenty percent of Dutch young people with financial problems? Then read in this article three tips that you can use to prevent the creation of debts and stay financially sound.
Tip 1: never spend more than it comes in
The problem with debts of course starts when you spend more than you receive. If you receive 1000 USD in salary and you have some allowances that still give you 200 USD, then it is not wise to spend more than 1200 USD a month on a structural basis. It is also not wise to spend exactly 1200 USD, because if you unexpectedly have to pay extra costs you will get into trouble. So always keep a buffer and with an income of 1200 USD never spend more than for example 1100 USD.
Tip 2: buy consciously
Think carefully about the expenses you make. Do you really need that new television or does the old television actually do well? And do you have to buy the cola of that expensive A-brand, or is the cheaper cola of the B-brand just a nice drink? By thinking carefully about your purchases, you consciously buy and you are less likely to get into debt. Of course you do not have to consider every euro that you spend, but certainly when shopping and doing large expenses, it is recommended to shop smart.
Tip 3: Refrain from loans or take out an attractive loan
If you do not want to get into financial difficulties, it is generally better to abandon loans altogether. If you still have to borrow real money, for example to pay for your studies, then it is best to look for a loan with attractive conditions and therefore a low interest rate. A good example of an attractive loan that students can take out is the loan from DUO. It is also important to find an attractive loan for other purposes.