5 Characteristics of People Who Live Debt-Free
How do some folks stay out of debt, though? There are certain characteristics that debt free people share; here are five of the best.
1 – They Always Pay Attention to the Small Stuff
People who keep track of their personal finances are much more likely to live debt free. If you have a solid grasp on how much money comes into your household, you are halfway there. The other half is monitoring where the money goes. You will have a clear picture of what you have and what you do not have, and you will be able to budget accordingly.
2 – They Know how to Live Within Their Means
It may sound simple, but debt-free people live on less than they make. This self-reliance is what keeps them debt free. It is an incredibly freeing experience not to be dependent on others for financial security, or if you are faced with an unexpected expense.
Young people (in particular) are susceptible to running into debt when they first live alone as it takes skill and time to learn how to live within your means. Getting help from parents is great (for some) but it is not a sustainable way to live and they may need to seek debt resolution specialists.
3 – They Get What Credit Cards are for
Credit cards give some people such a rush of excitement. Shopping can be fun, but the convenience of credit cards can lead to unchecked spending. People who stay debt free understand that a credit card should only be used for building their personal credit score and buying online items such as tickets. Those who understand credit also pay their credit card down quickly so as not to accrue the exorbitant interest some credit card companies charge.
4 – They are Willing to Make Sacrifices
Tracking your monthly expenses and sacrificing little luxuries can be hard, but successful debt free people do it all the time. Try to cut out:
- Gym memberships – walk or ride a bike instead
- Quit going to movies – there are many free options for entertainment on the web
- Cut your cable – use an antenna and the internet instead
- Stop eating out – You’ll save money cooking at home
If you are trying to get out of debt, making sacrifices is hard – but necessary. Those little luxuries can wait. They will come back when you are in a more stable financial situation.
5 – They Always Pay for Things in Cash
Remember, you cannot spend money you do not have. Paying for many items with cash allows you to see, feel and track what you can afford. It is one of the easiest ways to stick to a budget. Contact us today for a free consultation. We can help you get debt free quicker than you can imagine.