Borrowing Avoidance: Pay yourself more, borrow less.

Some people may believe that borrowing is a good thing, but I've come to learn that for many, borrowing often leaves us in a constant state of lack and not having enough. Think about it—if you’re living paycheck to paycheck, already struggling to cover your expenses with the income you have, taking on more debt by borrowing doesn't solve anything. It only makes it worse because you will find yourself scrambling to pay back what you have borrowed.

This only puts you in a deeper financial squeeze. Also, when family and friends are involved, borrowing can break friendships apart if bridges are crossed when a loan goes unpaid. We don't want to put ourselves in debt with others. We need to get to a place of breaking free from the cycle of borrowing and taking on more debt.

So, how do we do this? These are strategies I use to avoid borrowing even while paying off debt and expenses:

• I identify what put me in the position to need to borrow in the first place. Identifying the thing that puts you in the position to borrow can help you make better choices in the future, so that you are keeping more of your money and borrowing less. For me, I realized that I was people-pleasing and giving all my money away, leaving myself in a financial bind. I was also doing some emotional spending. Once I identified the issue for my lack of funds, I was able to take action and do the things necessary to avoid borrowing, such as: saying no more often, not giving away all my funds, and choosing not to eat out based on my emotions. Identify your habits and take deliberate steps to overcome them.

• I find other ways to make money so that I don't need to borrow. I chose to work delivery gigs. Most times when I needed to borrow, instead of asking if I could borrow some money, I'd just push myself to do a couple of deliveries. This way I didn’t need to borrow, or pay anyone back, and I felt good about using my own funds. Picking up additional streams of income is a good way to avoid borrowing but even then, you must be disciplined. When it comes to borrowing of any kind, identifying your habits and picking up extra income can help you save money so that you are not in the position to continuously borrow money.

• I discipline myself and wait until payday. This one is tough, but it can be helpful. Instead of borrowing, just discipline yourself and wait until payday if you can. This way when you get paid, you don't owe anyone, and you can take care of your business with your own funds. 

Take these steps and use them

I chose to write about borrowing because I've noticed that this is a big reason why people stay stuck financially. But, if we can position ourselves to be more disciplined, identify and overcome our poor financial habits, we can save more and reduce debt. We will gain more financial freedom, not only easing the burden on others by borrowing less, but also lightening the load on ourselves.

Question? Do you think borrowing of any kind (loans, credit cards, family/friends etc.) can be helpful or hurtful to one's finances, and why? Let me know in the comments. I'd love for you to share your thoughts.

Also, don’t forget to subscribe if you haven't already, and check out the blog tab for more practical advice and eye-opening financial insights.

Discipline is Key 🗝️

#KeepMoneyNow