Article from The Standard
Published on 01/04/2012
By PETER KAMURI
Having debts is a way of life for human beings. When you fall short of cash to pay meet children’s school fees, house rent and other utility bills, the option is to seek bailout from moneylenders.
However, to have financial independence, it is important to take control of your debts.
This is one way of ensuring that your financial future is transformed into a positive one. But how can you have a control of your debts that are weighing you down?
Collins Rotich, a financial expert observes, "To be able to keep off debts, it takes some effort and commitment.
This way, you will be assured that your chances of keeping off debilitating debts are enhanced."
He notes, "One way of ensuring that you survive debts is by ensuring that you always work with a budget. One reason why you constantly find yourself wondering where all your money goes is because you do not have a budget."
Spending guide
Rotich advises, "When you have a budget, you are unlikely to incur debts as you have a guideline on how much to spend and when."
"Start by determining the monthly take-home income against your expenses. To have a successful budget that will keep you out of debt, you need to ensure you spend less than you make," he advises.
Rotich cautions that in circumstances where one does not make enough to cover basic expenses, there is need to get a way of increasing your income.
At the same time, one should look into ways of reducing expenses to avoid running into debts.
"People get into debts because they want to sustain their lifestyle habits that gobble up their earnings and in the end dent their pockets. Identify these areas and craft ways of reducing expenses on them," he advises.
Tracking income
Rotich says it is important for people to understand their financial situations.
"This is a good way of having an idea as to where you stand and this will help to be in control of your finances. Many people get into debt since they do not track their income and expenses," he says.
"When you are out of debt, it is important to ensure that you do not get back to it.
However, remember discipline is essential if you will be able to take control of your finances and avoid debt," Rotich concludes.
Article from The Standard
