Do you really need that phone?

We find ourselves at a point in time where debts creep through every part of our lives, whether in the form of college payments, credit cards, mortgages or any other amount of money we owe to an institution or person. You might think that this problem might have to do with the system, though we're more participant in It than we would like to think. From buying the latest phone in order to put up with the expectations of others in social media to falling prey to a salesman trying to get us to purchase a commodity car with a new year in It. All of these things had led us to a life of perpetual spending without any rewards or piece of mind, making us have more headaches that we would ever want for a lifetime. That's why in this article I will talk about some ways in which you can differentiate luxury from necessity and how to combat debt in order to reach financial freedom. Let's begin:

What differentiates luxury from necessity?

Necessities are those things that we fundamentally require in order to keep ourselves alive and operate in the world avoiding positions of risk, requisites such as food, water, electricity, gas and all those things which we can't literally live in a peaceful manner without. This is very different from what luxury represents, these being things which are complementary and non-essential for our lifestyles, regardless of how much satisfaction and an increase in ego they can cause us in the short run.

We know what these two terms really mean, though we tend to confuse them continuosly, whether because we want to be accepted by our peers by having the same things they have, the standards set by shows and TV series or the many ads that make us feel worthless and behind of trends because we don't have a particular product. If you recognize all of these factors as a contribution of your expenses you'll be much more aware when those situation in which compulsive spending might come. Now that we comprehend this we can begin to talk about managing your finances so you can get out of your debt and be one step closer to financial prosperity:

Save more than you spend

Again, pretty obvious. Though even If we understand It in principle, we tend to overlook the role that cutting expenses plays in keeping you rich or poor. As there are cases of people that win 10 times less than others and still have a positive credit, you can have a solid net worth If whatever you earn, you save It in order to pay your debts. You can even determine a percentage of your monthly income to pay what you owe.

Cut people that incentive bad financial habits from your life

You might find that many people with who you hang out or follow in social media are surrounded by a lot of material things and cutting edge technology, portraying this fake lifestyle in their feeds. However, what you don't realize is that they're probably in the same situation or worse than yours, being dragged to more and more spending while their bills increase, all so they can pretend to be something they're not. That's why you should cut these people from your life, or at least removing these type of pages and individuals in social media all so you can keep the positive influences in your social media, motivating to feel happy even with reduced expenses.

Rebuilding your finances can be a painful and hard thing to do, however, there's nothing more rewarding that having your life in the right track. That's why I hope that this article could have been of use for you, making you understand that you don't have to buy a lot of things to increase your overall happiness and lifestyle, remembering you that as long as you're in debt, whatever you earn doesn't belong to you. Thanks you for your support and good luck!