Debt free people are not born but they are made. It’s easy to look at people without debt with stank-faced envy as you spend your days paying off student loans, car payments, or the speedboat that solved your midlife crisis. However, becoming one of them might not be as complicated as it seems.
Whether you’ve resolved to get debt-free this year or you have a long way to go, it’s good to be inspired. Look at people you know who are already living debt-free lives. Whether it’s a friend, family member or co-worker, the person you are thinking of probably shares similar qualities with other debt-free people.
Below are the common characteristics of debt-free people you can imbibe to live within your means:
1. They are keen on details.
People without debt monitor their personal finances closely, whether it is cash or on credit card. They are less likely to waste money by forgetting about payment due dates or overdraft fees. You can start paying more attention. Try checking your credit card statements monthly, making it a habit. Next monitor all of your spending. Now add up your income. Compare the two and see where you could cut back. Re-visit this budget a few times a year to stay on track.
2. They are wiser.
Wise people realize that debt is not a tool. Credit cards aren’t necessary for their everyday lives. They treat debt like leftovers they find at the back of their fridge; something that is not useful so they are getting rid of it.
3. They feel confident.
A person who believes in their money plan doesn’t care what others think of them. It frees up more money to attack their debts. With each debt they pay off, their confidence grows by leaps and bounds.
4. They do not shop compulsively.
We all know there are people out there who get a high on spending money, whether they have it or not. While not physically destructive such as drug or alcohol addiction, an uncontrolled shopping habit will make it virtually impossible to remain debt-free.
5. They find ways to save.
Being debt-free only means that you are smart enough to save. It is necessary to find different ways on how you can save effectively without depriving yourself of your needs and wants. Make it a habit of depositing a part of your salary and let it add up over the years. When an emergency occurs, use it instead of borrowing money.
6. They know how to handle their finances.
Debt-free people do their own research. If you want control over your finances, you need to learn about them. It may feel overwhelming but the sense of security you will feel in understanding what’s happening with your money will outweigh the discomfort.
7. They pretend they make less.
Even if you are already deep in debt or any loans such as paydays loans, you can start to improve your situation by immediately changing the way you look at your money. Debt-free people live on less than they make. This allows them to put money aside for buying a house, retirement and an emergency fund. This provides a financial independence that allows you more options in the future.
8. They think long term.
When the focus isn’t on immediate fulfillment, you can make smarter decisions. It means that you have to save up before you buy anything you want. This also gives you the time to consider if you really want to purchase something.
9. They use cash for payment.
Paying in cash ensures that you can’t spend money you do not have. By avoiding credit cards, you can physically keep track of what you’re spending and not blow out your monthly budget without realizing. Using cash whenever you can will ensure that you are much more likely to keep your finances under control.
