How to Avoid Debt While Living in a High-Cost Country
How to Avoid Debt While Living in a High-Cost Country
Living in a high-cost country feels like walking on a financial tightrope. One unexpected expense—a broken phone, a car repair, or even a medical bill—and suddenly you're falling into debt which leads you to complete anxities and depression . Whether you're an immigrant, student, freelancer, or full-time employee, debt can sneak up like a thief in the night unexpectedly and then you fell into debit.
But here's something surprising: millions of people live in the world’s most expensive cities—and thrive—without getting into debt. How do they do it? They just use a simple technique which nobody tell you about and which we are going to be discussing over here
This blog will shock you with truths most people don’t want to hear, and it will also inspire you with practical, clever ways to avoid debt—even when everything around you seems expensive.There is always ways out through which you could avoid felling into debit the entire life .
🌍 Why This Matters Now
In countries like the USA, UK, Canada, UAE, and Australia, the cost of living has soared in recent years. From rent and groceries to healthcare and education, prices keep rising while salaries remain stagnant for many.This is the biggest issue while everyone is very sad and are unable to buy the things they like the most or most importantly travel to there favorite place and the price of products are sky rocketing these days .
Yet, debt is not a requirement. It's a trap—but one you can avoid with awareness, discipline, and smart strategies.
🔥 The Shocking Truth: Most Debt Is Voluntary
Let’s start with something astonishing:
Most personal debt is not caused by emergencies. It’s caused by lifestyle choices.
📱 That new iPhone on monthly installments?
🚗 That shiny car with a high loan?
🏖️ That vacation you booked on a credit card?
These are all voluntary debts—not needs, but wants disguised as needs. This doesn’t mean you shouldn’t enjoy life—but it does mean we need to be brutally honest with ourselves.Lets be Honest is there any benefit of buying costly mobile or car on installments while you can use simple phone or instead of car local bus which can avoid felling into debit . the Answer is Yes You can So why trying to please and showoff other peoples while spending your money or rather wasting your money and trying to please other peoples or even your family members while the truth is they never ever be pleased with you after looking such things in your hand
You have to save yourself from debit and felling in it nobody can save you so stop pleasing others instead please your ownself first of all.
🧠 Mindset Shift: From “I Deserve It” to “I Want Freedom”
The biggest difference between people who stay out of debt and those who don’t?
Their mindset.
Here’s a mental trick that works wonders:
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Don’t ask, “Can I afford the monthly payment?”
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Instead, ask, “Can I afford to buy this TWICE with cash?”
If not, you can’t afford it.
That shift—from “I deserve this” to “I want financial freedom”—is what will save you.Surprsing isn t it so you should try to make your mindset like this .
📊 Real Costs in High-Cost Countries
Let’s look at average costs in some expensive places (all values in USD/month):
| Country | Rent (1-bed apartment) | Groceries | Transport | Healthcare |
|---|---|---|---|---|
| USA (NYC) | $2,500 | $400 | $120 | $400+ |
| UK (London) | $2,000 | $350 | $180 | Free/NHS |
| Canada (Toronto) | $1,800 | $350 | $140 | $250 |
| Australia (Sydney) | $2,000 | $400 | $150 | $200+ |
| UAE (Dubai) | $1,500 | $300 | $100 | Employer |
Now imagine doing this on a $2,500/month income. You’ll drown without strategy.
💡 10 Astonishing Ways to Avoid Debt While Living in an Expensive Country
1. Share Everything (Yes, Even Housing)
👉 In NYC, London, or Sydney, solo living is a luxury.
Reality Check: Roommates aren’t just for college students anymore. Professionals in their 30s and 40s share apartments to cut rent in half—or more.
🔑 Surprising Tip: Sites like Cohabitas or Roomi connect you with roommates even if you're older or have kids.This would make your life really really easy and effective and will also remove all your depressions and anxieties and will also help you not felling in debit .
2. Avoid Car Ownership (Yes, Even in the US)
🚗 Car loans are a top cause of debt.
In high-cost cities, public transport is cheaper, faster, and sometimes more reliable.
💥 Shocking Stat: The average American spends over $10,000 per year owning a car. That’s $833/month.
If you must own one, buy used, pay cash, and avoid financing.No need to please others by buying very expansive cars and then later on felling in debit causing you to feel depressed and anxieties instead use what is benificial and loc costs like local bus etc.
3. Master the “Invisible Budget” Strategy
Most budgets fail because they feel like punishment.
Here’s a surprising system:
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Auto-transfer your salary: 50% to bills account, 30% to savings, 20% to daily spending.
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Make your “spending account” the only one you use.
🎯 Result: You don’t have to track every penny, but you still live within your means.
4. Cut the Subscription Cancer
Netflix. Spotify. Amazon Prime. Disney+. Apple TV. Gym. Meditation apps.
🔥 Surprise: The average household pays over $300/month on subscriptions.
Ask yourself: Would I subscribe to this again today?
If not, cancel it.My Question is are these Benefiting you in any sense if not then think thrice why i am spending my money or rather wasting my money on such things while in return they are not paying me any penny and are helping me in felling in debit so why not stop wasting my money on it ,
5. Cook Like Your Grandma (Seriously)
👵 Your grandma didn’t order UberEats.
Cooking at home saves thousands annually:
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Lunch out daily = $10/day = $3,650/year
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Homemade lunch = $2/day = $730/year
📌 Surprising Reality: Meal prepping saves time, not just money.You can use your cooked food twice and even thrice this is how your time and money is saved . If you are eating from outside you will have to first go there which will costs you your own time and then wait in line to buy and then eat everytime you go your money and time but are wasted and not only that you are wasting your health as well.
6. Use Immigrant Superpowers
If you're an immigrant in a rich country, you likely have:
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A second language
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A wider family network
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The drive to hustle harder
🏆 Truth Bomb: Many immigrants save 30–50% of their income by living simply and sending money back home.
Use that superpower—not to survive, but to build wealth.
7. Never Finance Fun
Vacations, weddings, gadgets, clothes—if you can’t pay upfront, delay it.
💡 Surprising Alternative: Create a “fun sinking fund.” Save $100/month and take your dream vacation with zero guilt or interest.
8. Embrace Second-Hand Pride
Thrift stores. Facebook Marketplace. Craigslist. Gumtree.
Buying second-hand isn’t a sign of poverty—it’s a sign of wisdom.
🧥 Designer coat for $30. 💻 Laptop for $200 instead of $900. 🛋️ Couch for free.
The rich buy assets. The poor buy image.
9. Turn Your Home into an Income Machine
Got a spare room? Airbnb it. Garage? Rent it out. Storage space? List it.
📦 In Dubai, a man paid off his mortgage early by just renting out parking spots.
Think creatively: Homes shouldn’t just eat money—they should make it.
10. Use Credit Like Fire—With Caution
Credit isn’t evil—but it’s dangerous if uncontrolled.
Tips:
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Use credit cards only for things you can pay off this month
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Use cashback cards (only if you pay in full)
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Never treat credit limits as money you own
🔒 Golden Rule: If you can’t pay it off in 30 days, don’t swipe it.This is something which no one will tell you .
🛠️ Real-Life Case Study: No Debt in New York City
Meet Sarah, a 29-year-old teacher living in NYC.
She earns $3,500/month and lives with two roommates. She:
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Pays $1,000 in rent
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Cooks all meals at home
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Uses the subway
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Buys clothes at thrift stores
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Tutors online on weekends
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Saves $700/month
Sarah has zero debt—and travels every year.
Her secret? Simplicity. She lives like a broke student—but she’s actually building wealth.and i would also recommend you to live like her if you don t want to fell into debit and also want to enjoy your vacations rest is your own choice.
❓Frequently Asked Questions (FAQs)
Q1: Can I live in a high-cost country without a credit card?
Yes. Use a debit card or prepaid card. Just make sure you have an emergency fund.
Q2: Is it better to rent or buy in expensive cities?
Renting is often cheaper long-term unless you plan to stay for 10+ years and can afford a big down payment.
Q3: What if I already have debt?
Focus on the avalanche method: Pay off the highest-interest debt first while making minimum payments on the rest.
Q4: Are side hustles worth it in high-cost countries?
Absolutely. A few extra hours of tutoring, freelancing, or delivery can cover your rent or build your savings.
Q5: What if I feel like I’m missing out?
Debt is the real thing that steals your freedom. Living simply isn’t missing out—it’s building a powerful future.
💬 Final Thoughts: Escape the Trap Before It Springs
Debt is not a symptom of poverty. It’s often a result of trying to look rich in a high-cost environment.
In a world where everything is marketed as “essential,” it takes courage to say:
“No, I choose freedom over fake luxury.”
If you're reading this in London, Dubai, Sydney, Toronto, or New York, remember: people are living well without debt—and you can too. With strategy, humility, and a bold mindset shift, you can build real wealth, not just the appearance of it.
📌 Ready to Break Free?
If this post inspired you, share it with a friend who’s drowning in “invisible debt.” You might just change their life.
Thanks a lot for reading this out and i hope that from no and onwards you will never ever fell again in the trap of "invisible debt" again
If you are currently in debt then you could give a read to it and can start coming out of the trap of debit : https://mindsetmasteryofficial.blogspot.com/2025/06/best-side-hustles-for-beginners-in-2025.html
Thanks a lot once again and I wil see you in upcoming posts
Your Well Wisher
MINDSET MASTERY
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