People want many things but we cannot have everything. Therefore you must prioritize your goals according to your income and what you really need. This seems logical and easy to implement in daily life. But it is not so. Therefore it is one of the main reasons for indebtedness of many people. There are several tips that you can follow to have a good financial health. The first is to recognize the problem and make an action plan.
Make a simple statement of your income and subtract the regular expenses you have to incur on items such as food, utility bills, transport, health, etc. Also subtract the amount of money you require each month to pay debts. You have to allot some amount for emergencies too. If the result of this statement indicates that income do not cover expenditure, you are living beyond your means. In this situation you must adjust your spending.
In life, there are very important things like food , health , education and transport. Things like fun , holiday, purchases of consumer goods, etc are not so important. You can leave them for later. It would also help you to visit a financial institution and assess the possibility of putting all your debts into a single loan. This will help you to reduce your monthly debt payments and free up resources for other expenses in the month.
Once your finances are under control, you could use part of the proceeds to a savings account, which will later allow you to make new projects. The loans offered by financial institutions are a useful alternative to pay for goods and services, which otherwise make take long time to purchase such as buying a house or a car. What matters is to use them efficiently to avoid falling into the debt hangover.