If you are reading this:
It means that you are struggling to pay off your mobile application loans.
You tried paying in installments. You tried borrowing from one mobile loan app to repay another.
But nothing seems to work.
So why are you in this financial bondage?
You need a budget to track where your spending your money.
So that you don’t overspend. And end up taking a mobile loan.
The budget should be tailor made to your values and financial goals. This helps you stick to your budget and prioritize achieving your goals.
It may also help if you confide in an accountability partner. Somebody to keep you in check and motivate you to stick to the plan.
This is a fund to cover you when unexpected bills come your way. Or an unexpected expense.
As it happens with life.
For a start, you can save 3–6 months worth of your living expenses
Then grow it depending on personal goals and needs.
Put the money aside in a liquid account such as a money market fund.
- It will be earning interest.
- It can be accessed within a day or two of putting in a request.
You take up the loans to cater for your day to day household needs. And not to generate income.
You’re living beyond your means. Chances of taking up a mobile loan to cover the deficit is high.
One rule of smart borrowing is to make more money. Enough to cover the principal borrowed plus the interest.
You have realized what you have been doing wrong.
It is time you create a spending plan of your income. Do it before the money hits your account each and every month.
Start building an emergency fund slowly. Put the money away from your sticky fingers.
Lastly, leverage borrowed money to make more coins for yourself. Not to keep up with your lifestyle.
Over to you.
Will you be developing a budget next month?