How To Live Debt Free
Tips for a debt free life
Becoming debt free and living debt free are not the same thing. If you are on the road to paying off all your debt, or if you have already achieved that elusive and difficult goal, then congratulations -- you're halfway there. Now, you need to focus on how to live debt free to make sure your long-term financial health is looked after.
To live free of debt, you need to be in the right mindset. The more money people make -- or the more money they can access through loans and credit cards -- the more money they tend to spend. For some people, spending money is an impulse that's difficult to control regardless of their income levels. To live a debt free life, you're going to have to gain control over your spending habits and be a wise and educated consumer.
Live Without Debt
People who live with no debt have a healthy relationship with money. Here are some of their habits:
- Successful prioritizing. Controlling spending means controlling your priorities. Creature comforts are just that -- comforts. You should never prioritize the purchase of luxury items or treats ahead of the necessities of day to day life, or sacrifice the things you really need just so you can have more of the things you want.
- Don't use credit cards. Use a debit card, branded with a credit card partnership logo if you prefer, to make all your plastic transactions. This is a hallmark of debt free people -- they either don't have credit cards, or they rarely use them. A home mortgage is typically the only major financial commitment they have.
- Focus on increasing income. If you want more luxuries, earn them by increasing your income. There's no substitute for working to earn the things you want -- it will help you keep a healthy mindset about money and how to spend it.
Finally, always live within your means. The single most important thing you can do is set a monthly budget and stick to it no matter what. Being strict about budgeting reinforces a vital lesson: if you want something, you're going to have to make sacrifices in other areas or earn the money to buy it, plain and simple.