Avoid Debt

We have all had nightmares, but the best part of those nightmares is when we wake up from them. Debt, on the other hand, is one that we all hope never finds us.

As the old saying goes, “Prevention is better than cure”. Here’s some simple tips that to avoid deck really aren’t that difficult to keep, but are often cast aside and forgotten.


1. Budget the amount to save, not the amount to spend.
Prioritize saving, not spending.A common mistake people make is giving themselves a budget as to how much they allow themselves to spend every month.

But it doesn’t take much thought to realize that the priority should be in budgeting how much you want to save each month. Doing it the other way around just makes your monthly savings amount to ‘whatever’s left’.


2. Cut Extravagant Purchases10847522_10152901610251321_8813759458513370455_o

Building on the previous point, break down the budget allotted for spending even further, into needs and wants. The budget for needs shouldn’t be difficult to calculate. Utilities, groceries, phone bills. If you still don’t know how much you should be putting aside for these monthly knocks of reality that never fail to cringe in our chairs a little, we’d suggest you get started.

We’re not saying don’t buy anything that you want ever. Make informed decisions. Want that BMW? Find out its fuel consumption to project your fuel costs. Forecast how much maintenance that BMW would need based on other drivers’ experience. And if this is still within your means i.e. salary, then perhaps you’ve got yourself a BMW.


3. Pay Credit Card Bills Punctuallyavoid debtThis is extremely important. Use multiple layers of prevention methods to never pay a credit card bill late.- Use a reminder app.
– Always pay bills fully because once you start rolling over, it’s hard to stop and you’ll be stuck in a vicious cycle of endless debt.
– Set all your billing cycles to be the same as one another so that you don’t have trouble keeping track of when you need to be paying your bills.


4. Choose Your Payment Methods Wisely
We agree, there are cards that give you cash rebates, and that can be a good card to have if it’s used for things you spend on the most, like food.But it should never be used to spend money that is not already in your bank. This means, even if you need to spend $10,000, make sure that the amount is already available in your bank balance, and pay it off right away, or as soon as the bill comes in.Users often then get a shock at the end of the month when their salary comes in, and 90% of it immediately has to be used to pay off the credit card bills.

If you’ve found yourself in this situation before, rethink your payment methods and check out the next pointer on what credit card you should look out for.


5. Use Excel, or an App to track your expenditure!

You have grown up in this revolutionary modern world of digital age and change. Make use of what’s available around you! Microsoft Excel, or download smartphone applications that guide you in managing your wealth. Here’s one that we’ve tried and recommend.

Expense Manager allows you to classify your expenses according to categories, and then add more details to it – Entertainment, Movies. Food, Snacks.

Trust us when we say this has helped in many of our decisions. Whenever a new credit card or new benefits emerge, you may get tempted to sign for yet another credit card. Did you know that the Citibank Rewards card gives you 4 miles for every dollar spent in departmental stores or online shopping stores? In fact, they give 8 miles for every dollar spent in at Topshop, Topman, Dorothy Perkins etc. Sounds awesome, right?

But when some of us looked at our Expense Manager app, we found that we spent the most on food. The last thing we need is a card to encourage us to spend more on shopping.



Having debts is a serious problem to avoid at all costs. Debts may delay starting a family. Debts can take years to clear. Don’t let debts make you sacrifice important areas of your life.


If you want to know more about Our Income Investing Mastery Programme and its benefits . . .  email us now at ask@theageofgiants.net (Singapore)


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Jade Lee is the Chief Editor of Giants Learning Technologies. Her life purpose is to help; thus committing to youths like herself through articles regarding early financial planning. Jade graduated from Ngee Ann Polytechnic where she attained a Diploma with Merit in Early Childhood Education, having dedicated three years in understanding preschool children. Under a scholarship, she reads Bachelor of Arts in Psychology from Nanyang Technological University. Jade is also a commercial model and engages in Hip-Hop dance. Find out more about her insights via jade@theageofgiants.net