HABITS OF DEBT FREE PEOPLE
Getting out of debt is a HUGE thing! It’s something most people dream about, but never truly achieve. Those that do stick to a path of eliminating debt feel massive relief when they finally hit that zero. We all know that getting out of debt is not easy, however staying out of it is an even a bigger challenge – a challenge most of us keep failing. The idea of staying debt-free seems like an unattainable dream but I’m here to tell you, it is not impossible.
Think about all the people who stopped living paycheck to paycheck, the ones who were able to pay all their student loans, credit card interest and all their monthly payments. Have you ever wondered what their habits are for living a debt-free life? If you do, then here are 7 things they learned to do and consistently apply to their financial lives.
1. Sticking to a budget
Having and earning a good income doesn’t mean you no longer need a budget. A budget is not something you associate with poverty – having a budget simply means having a plan for the money you have.
That’s why debt-free people always sit down every month and plan their monthly expenses, from groceries to utilities and of course for their savings and emergency funds. Most importantly, they don’t allow themselves to be tempted and manipulated to deviate from their budget.
2. Pretending to Make Less
Instead of spending every dollar or splurging on “wants,” debt-free people pretend that they make less than what they really do and put the extra money towards their savings. This means living below your means or not spending more than what you are making. So, instead of planning on getting the newest car, put that money towards your emergency funds instead.
3. Putting away credit cards
I know that credit cards are convenient and if you pay off the full balance each month, those interest charges won’t hit you. However, debt-free people know that credit cards can become very expensive. It’s always so easy to overspend when you are using them, and we should know that spending money that we don’t have is a bad idea. Don’t buy now then worry about how you will pay it off later.
4. Knowing their priorities
We always need to recognize how hard we’ve worked to get our income, so it makes sense to spend it wisely. Know your priorities and always stick to your budget. Remember, all the sacrifices that you make now will pay off later.
And by doing this, it will help you steer away from any financial troubles.
5. Always finding ways to save
Another common habit that debt-free people have is that they always find ways to save. It could be on monthly groceries, cutting off unnecessary expenses or reducing monthly bills. They look for alternative options on how to save more money each month.
Debt-free people make sure to pay themselves first. When they receive their paychecks, they save a specific amount of money each month and whatever is left is budgeted to cover their monthly expenses.
6. Planning for long term goals
Debt-free people see a bigger picture – they plan for their long-term goals. They are aware that the choices and actions they make now will affect what’s in store for them in the future.
So, try thinking about your plan for the next five years and make sure to think of ways on how you’ll achieve that plan.
7. Having patience
People who are debt-free have self-control. They delay gratification. They know that they don’t need to keep up with the newest trends and they don’t feel the need to impress people with the material things they own. If they don’t have the money to buy something they “want,” instead of using credit cards to pay for it and live with the interest charges on those purchases, they save the money.
Staying out of debt doesn’t occur overnight. It takes practice, effort and of course sacrifice. But as long as you are willing to put that extra work and dedication in making it happen, then it will definitely happen in your life. So, let’s start doing this today!
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Do you have anything to share on this subject? Let me know in the comment section below or send me an email, I would love to hear from you!