Krishnan and I are attending the “Science of Well Being” course by Yale University on Coursera. The very first activity that Prof Laurie Santos, has asked the participants to do is to maintain a gratitude journal and jot down 5 things that you are grateful for everyday.
I thought it would be great to share one thing everyday with my blog readers !
Today am grateful for the fact that we have no debts.
As many of our friends know, Krishnan and I went through bankruptcy and clawed our way out of it. One of the first decisions we took at that time was to become debt free. We make sure that we stay within our means and any major expense is thought out and debated.
Debts pile up and make one’s life miserable, and we have first hand experience of that. Being debt free is very important to be happy.
Some of the ways that you can remain debt free –
1. First save then spend
2. Never take a loan for a depreciating asset like a car. If your company has a car policy, by all means use it but if you are buying a car without the tax benefits of a company car policy, just buy the car outright. Second hand cars are great value buys.
3. Never let your EMIs be more than half your salary. A home loan EMI will be huge. Buy only that property/land whose EMI doesn’t exceed 50% of your salary.
4. Don’t strive to keep up with the Joneses ! Not one of them will come to your rescue when the debts pile up. That amazing outfit that cost a bomb and was used for just a day, can be rented as well.
5. Pay off the credit card dues every single month – never roll over. This is the worst kind of debt trap. It simply means you are spending beyond your means. Ideally don’t get a credit card if you have no control.