Hey Friends! Let’s talk about something important—How to Become Debt-Free on a Low Income! I know, it sounds super boring at first, but trust me, it’s like learning how to win a game! Imagine playing your favorite video game and getting out of the tricky maze. Only, debt is that maze, and I’m here to guide you to the exit door!
And oh, don’t worry. I’ll keep it simple, just like explaining to my little self—no big fancy words, promise.
Table of Contents
What is Debt? {What is this?}
Friends, debt means loan – that is, taking money from someone and then returning it later. Imagine, you want to buy a very nice car, but you have very little money. You ask your friend Umar for money and promise, “Umar, I will return it tomorrow!”
That’s it, debt! But there is a twist in it. When there is a big debt, like borrowing money from the bank, the bank says, “Hey bro, we have helped you, so we will take some extra money too, it’s called interest!” So, if Umar is smart, he can also say, “But I will use your car, you will have to pay when I need it!” 😄
Debt is also beneficial, like adults fulfill their dreams – start a business or buy a new house. But if the debt is too high and is not repaid on time, it can be a problem.
Understand that debt is like a magic horse- if handled correctly, it can take you to your dream destination. But if not handled, it will make you fall!
So remember, taking money from Ravi to buy chocolates during the holidays is a good thing, just make sure you can pay it back. Otherwise Ravi will refuse to be his Santa! 🎅
Step 1: Know Your Debt {count your pizza slices}
Friend, think taking a loan is like borrowing your friend’s tiffin. Didn’t you bring food today? Take the tiffin! But the next day, you have to give him double chocolate biscuits! 😜 Loan means money borrowed today but has to be returned later – sometimes with an “extra payment” called interest.
Let’s take the example of Rohan. Rohan wanted a bicycle but didn’t have all the money. He took a loan from his uncle. The uncle said, “Buy the bicycle now, but you have to pay ₹500 extra every month.” Rohan thought, “Great!” But soon he realized that all the hard work he was doing to earn ₹500 extra, he could have saved before buying the bicycle.
So, before taking a loan ask: Is it necessary? How much is the interest? How many days do you have to pay? It is helpful to use a loan properly, otherwise it becomes an ATM of stress! Got it? Live with balance and continue the EMIs of happiness. 😄
- Write it all down!
- Note the interest rates (yeh important hai).
Step 2: Make a Budget {Biryani plan for your income}
Hey, budgeting means writing your money story! See, let’s say you have ₹100 (wow, looks like you’re rich, right?). But if you spend all ₹100 on golgappas and chocolates one day, what will happen the next day? You’ll walk around like an idiot! 😅
So budgeting means being smart about your money. First think about what’s important: school stationery, snacks and saving something for fun. Let’s say Rohan got ₹500 pocket money. He spent ₹300 on buying books, ₹100 on movies and secretly put ₹100 in his piggy bank.
Now when his favorite video game came on sale, he had the money ready. Makes sense, right? Budgeting means managing money for your dreams. Remember, money is like a pet dog – if you don’t discipline it, it will eat everything in the house! 🐶💸
Step 3: Pay in Small Steps {little joys}
Wait, where are you going, listen! Imagine you want a shiny new bicycle, but you are short on money. “Pay in small steps” means “Son, no worries! You can have the bicycle and pay a little bit every month.” It’s like sharing a big chocolate bar – one piece today, one piece tomorrow, until it’s all gone. Easy, right?
Let me tell you about Raju Bhaiya. He wanted a smartphone, but he didn’t have all the money at first. So, he paid in “small steps”. Paid some money every month, and got his phone! Now he’s taking selfies, and masturbating too.
The best part? It doesn’t feel like a heavy burden. Like climbing one step at a time, instead of jumping all the way. Do you understand? There are dreams worse than such small payments
Step 4: Cut Costs {do a little juggling}
Okay, so “cut costs” means saving money by spending less. Imagine you have ₹100 for the week, but instead of buying chocolate every day, you decide to buy one big bar for ₹50 and save the rest! You’re cutting costs to have more money for later. It’s like when your mom tells you to stop buying chips and save for a cool toy—you cut the chips to get the toy! So, cutting costs is just being smart about spending, like saving your pocket money for something you really want. Simple, right? 🤑
Now, if you’re on a low income, you’ve got to get creative:
- Skip fancy coffee shops and make coffee at home (ghar wali chai best hai).
- Sell things you don’t need (woh purane kapde jo ab fit bhi nahi hote).
- Use discounts and holiday sales wisely (bas apne budget ke andar rehna).
Remember, it’s not forever—it’s for freedom!
Step 5: Earn Extra Income {Side Hustle, Baby!}
Friends, extra income means earning a little extra money, that’s it! Just like you earned some extra money by helping your milkman uncle, you can also earn money by using your skills or hobbies. Like you can make funny videos on YouTube or earn extra money by giving homework to someone! Imagine, one day you get a chocolate and the next day you are buying a big chocolate bar with your money! Extra income will increase your pocket money and you will have more fun!
Now think of ways to earn more money!
- Start a holiday side gig like selling cookies or handmade gifts.
- Offer services like tutoring or babysitting (yeh Christmas time pe chalta hai!).
- Online surveys or freelancing—jo kar sakte ho!
Step 6: Celebrate Small Wins {It is important to be happy}
Oh oh dear, “celebrate small wins” means celebrate even the smallest of wins! Like finishing your homework, or balancing on a bike for the first time! Similarly, small wins should be celebrated like we eat ice cream after watching our favorite TV show! If you celebrate every small win, the big wins will taste even more delicious! Imagine, one day you solved 5 math problems, reward yourself with a thin samosa! Celebrations make life more fun, get it?
Paid off a debt? Yay! Dance, but just a little. Don’t splurge on a big party. Reward yourself in small, affordable ways—like watching your favorite holiday movie.
Step 7: Be Patient {The fruit of patience is debt-free}
If you want something, you need to have some patience! Just like you get your favorite ice cream after a while, good things also take some time. If you play a game on your phone and its loading screen comes, you calm down, right? Similarly, when nothing happens in life, just wait. Your dreams will also come true in the same way- it just takes some time. Just like a mother makes everything for you, with patience- life is preparing everything for you! 😊
Being debt free is not possible overnight. It is like waiting for a cake to bake- it takes time, but the result is much sweeter! Stick to your plan and trust the process.
A Fun Joke to Keep You Smiling
Why did the credit card go to school?
Because it wanted to learn some interest-ing things! 😄
FAQ: Becoming Debt-Free on a Low Income
Q. How can I start paying off debt on a low income?
A. :- Begin by tracking all your debts to understand the total amount owed. Then, create a budget to identify areas where you can cut expenses and free up money for repayment
Q. What repayment methods work best for low-income earners?
A :- followed these points.
- Debt Snowball: Pay off the smallest debts first to build momentum.
- Debt Avalanche: Focus on debts with the highest interest rates to save money long-term.
- Hybrid Method: Combine both to suit your financial situation
Q. How can I save money while repaying debt?
A :- followed these points.
- Cook at home instead of dining out.
- Avoid impulse shopping by using a list.
- Audit and cancel unused subscriptions.
- Opt for free or cheaper entertainment options.
Q. Should I consider increasing my income?
A: – Yes! Explore part-time jobs, freelance work, or selling unused items. This additional income can accelerate debt repayment.
Q. How do I stay motivated?
A. :- Set clear goals and celebrate small wins, like paying off a single debt. Visualizing a debt-free future can keep you focused
Final Words: Tum Bhi Kar Sakte Ho!
Becoming debt-free, even on a low income, is tough but totally doable. Just remember:
- Small steps lead to big results.
- Every paisa counts.
- You are stronger than your debt.
This holiday season, let’s start your journey to financial freedom! Imagine next year, celebrating without worries and buying gifts for your loved ones without guilt. Woh feeling priceless hai!
Ab bas karo, get started! You got this, my friend! 😊
Also read this
No-Spend Month Made Easy at 2025: The Ultimate Guide for Beginners to Save Big Without Stress.
Top 8 side hustle ideas to make money from home: Simple and creative ways to earn extra money.
What Struggles or Victories Have You Experienced When It Comes to Saving Money?