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Avoid borrowing more than you can afford from "summary" of Debt Free for Life by David Bach
When it comes to managing your finances, one of the most important principles to remember is to never take on more debt than you can realistically afford to repay. This may seem like common sense, but many people find themselves in financial trouble because they don't heed this simple advice. It can be tempting to borrow money to buy things you want right now, whether it's a new car, a designer outfit, or a dream vacation. But if you can't afford to pay for these things in cash, you probably can't afford them at all. When you borrow money, you are essentially borrowing from your future self, committing to repay that debt with interest. If you take on more debt than you can comfortably manage, you risk falling into a cycle of debt that can be difficult to break free from. High interest rates, late fees, and penalties can quickly accumulate, making it even harder to dig yourself out of debt. To avoid this trap, it's crucial to live within your means and only borrow money for things that are truly necessary. Before taking on any new debt, ask yourself whether you can realistically afford the monthly payments and if the purchase is worth the long-term financial burden. By being mindful of how much debt you can comfortably handle, you can avoid the stress and anxiety that comes with being in over your head financially. Remember, financial freedom is about more than just having a high credit score - it's about feeling secure and in control of your money.
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