Living a debt free lifestyle is not an easy thing to do, as there are so many reasons for people to accumulate debt. One such reason is peer pressure. The most difficult task when it comes to living a debt free life is to avoid listening to everyone who is pushing you to spend money. Another reason is that creditors make it very easy for consumers to take on more and more debt with offerings such as low-interest credit cards, etc. Avoiding these offers and learning to say no, is difficult for most people, but some have done just that and are living debt-free lifestyles. But, people living debt-free lifestyles must practice different spending habits from those who are not debt free. This article, the habits of debt free people, explores the habits that help turn their finances around so they could live a debt-free lifestyle.
People living debt-free lifestyles no longer work just to pay most of their income to their creditors but to have their money working for them, doing the things they want. If you are serious about getting out of debt, you may want to implement some of these habits, so they could help turn your finances around and cut the stress related to spending more than you can afford.
Maureen Campaiola from AdebtFreeStressfreeLife.com recently published a checklist of the “11 Habits of People Who are Debt Free”, habits that set them apart from those who are constantly in debt.
The following is the checklist followed by a short summary of each habit.
- Budgeting is one of the key habits of debt free people. They know they can’t waste money on things that are not necessary such as late fee and overdraft notices, etc., so they allocate money to their bills and expenses so that no money goes to waste.
- Living within their means is essential for people living debt free lives. It is important to learn that you must spend less that you earn to be debt free. It is not easy; it does take some discipline because if you are buying large items on credit, it means you don’t have the money to pay for it. But if you live within your means, you will have money to save, and for other goals, you may be trying to reach.
- Living within your needs can sometimes mean not going on shopping sprees when you get the urge. You must learn to be happy with what you have while saving for the future.
- People who are debt-free save their money. Some even enjoy putting money into the savings and investments accounts to have the pleasure of knowing they have a financial plan.
- People who are debt-free don’t feel the need to impress anyone with the latest gadgets or accessories. What’s important to them is not having any form of debt. You don’t need to have an array of electronic devices, having what you can afford is the more important.
- Setting goals is another key strategy in the habits of debt free people. When you set goals and have a plan of action developed, it’s easy to stay on track. When you don’t, well, it’s more difficult because you don’t know where you are heading. You’re just floundering around, trying to figure it out without a plan of attack.
- People who are debt-free tend to use cash, which gives them control over their money and allows them to avoid the temptation to overspend. Converting to cash is probably one of the most important habits of them all because it will change your spending habits.
- Another important factor in the habits of debt free people is their willingness to learn about their finances so they can make the best financial decisions possible. For example, you must learn about your taxes, investments, etc., so that you can make the decisions you make are the right ones.
- Being proactive is another important habit of people living debt free lifestyles. They actively look for ways to cut costs and save money, searching for opportunities on an ongoing basis to save where they can while leaving nothing to chance.
- Another major factor in the habits of debt free people is the stress-free life that comes with debt freedom. Stress makes a big difference between people carrying a lot of debt and those without. AS a result, more and more people are choosing to live the debt-free lifestyle because it is less stressful and more rewarding
- With the stress gone, you can now concentrate on developing and enjoying relationships, cultivating stronger ties with the people who matter most to you.
The habits of debt free people aren’t difficult to implement, but they do need a level of dedication and commitment. Do not try to implement all of them at the same time because it could seem overwhelming.
Start with just one habit and wait until you get used to it before adding another one. Eventually, you’ll embrace all the habits and start down the road to great financial freedom, stress-free living, and a debt-free lifestyle.
Some of the main advantages you will get from a debt free lifestyle are:
- Freedom to lead the life you want, including changing careers, leaving a relationship, moving to a new city, etc.
- Less worry about money. You will have peace of mind knowing that when your paycheck comes in, you get to decide how to spend it.
- Increase savings. You can create an emergency fund, save for retirement and build some much-needed, long-term financial security.
- Avoid the interest rate trap. You can get back to paying for your lifestyle in cash, not financing it at the expense of your financial freedom.
As you can see, life without debt is much more enjoyable than life with debt, and becoming debt-free can have enormous benefits for your budget, quality of life, and peace of mind.
If you are serious about getting out of debt and need the assistance of a debt relief professional, check review sites such as Top Consumer Reviews.com which publishes a top ten ranking of the best debt relief programs for 2017.