What is an effective strategy for staying out of debt?

Living within your financial means is a fundamental strategy for staying out of debt. This practice involves budgeting your income to ensure that your expenses do not surpass what you earn. By managing your finances wisely, you prioritize essential spending and avoid unnecessary purchases, which minimizes the risk of accumulating debt.

This approach not only helps in preventing financial difficulties but also encourages saving, which can provide a safety net for unexpected expenses. Living within your means fosters responsible financial habits and prepares you for future financial goals, such as buying a home or saving for retirement. It's a sustainable lifestyle choice that promotes long-term financial health.