Debt-free people are a rare breed . especially in today’s world. Almost everyone has fallen for the myth that having a high FICO score, an abundance of credit card points, and a full mailbox of credit card applications is the only ways to achieve financial tranquility.
Consequently, you might assume that people who live debt-free, have an emergency fund, and don’t spend more than they earn are weird. But living a debt-free life isn’t only for a special group of people. It’s something anyone can do with hard work and some special characteristics.
In the modern world, being debt-free may seem like an unattainable goal, but anyone can do it with the correct attitude and techniques. Though achieving financial freedom takes effort and commitment, the benefits are well worth it.
Here are 10 characteristics of people who experience debt-free living:
1. Countercultural: They challenge the societal norms that promote debt as a necessary tool for survival. They believe in living below their means and avoiding unnecessary purchases
2. Self-control: They possess the strength of character to withstand impulsive buys and put long-term financial objectives ahead of temporary cravings.
3 Confident: They have a strong belief in their money plan and don’t care about the opinions of others. They are comfortable with their choices and don’t feel the need to keep up with the Joneses
4. Assertive: They are not afraid to say no to social events or purchases that don’t align with their financial goals. They prioritize their debt-free journey and are comfortable setting boundaries.
5. Goal-oriented: They have specific, measurable, achievable, relevant, and time-bound financial goals. They create a plan and work towards achieving it with determination.
6. Gazelle intense: They have a strong desire to settle their debt as soon as possible. They take advantage of every chance to save money and contribute more to their debt.
7. Satisfied with their current situation: They know that genuine happiness is not derived from material belongings They don’t feel the need to continuously acquire more because they are content with what they already have.
8. Willing to make sacrifices: In order to reach their financial objectives, they are prepared to temporarily give up some comforts or luxuries. They are aware that these hardships are only momentary and will eventually result in a more rewarding future.
9. Non-comparative: They focus on their own journey and don’t compare their lives to others. They understand that everyone has different circumstances and goals.
10. Generous: They believe in giving back to their community and helping others. They understand that true wealth is not measured by material possessions but by the impact they have on the world.
Living debt-free is a journey, not a destination. It requires constant effort and commitment, but the rewards are immense. By adopting these characteristics, you can take control of your finances and achieve the financial freedom you desire.
Additional Tips for Living Debt-Free:
- Create a budget and track your spending.
- Pay off high-interest debt first.
- Automate your savings and debt payments.
- Find ways to increase your income.
- Seek professional help if needed.
Remember, becoming debt-free is possible with the right mindset and strategies. By following these tips and adopting the characteristics of debt-free people, you can achieve financial freedom and live a more fulfilling life.
They’re willing to make sacrifices.
Among the things one may have to give up in order to become debt-free are eating out, weekly movie dates, and premium cable packages. But keep in mind: Budget cuts are just temporary. Once the debt is gone, there’s more room in the budget for those dinner-and-a-movie dates.
They’re gazelle intense.
If you’ve taken Financial Peace University, you probably remember Dave talking about gazelle intensity. It occurs when you become so depressed about debt that you flee as quickly as you can (much like a gazelle). This means they’re looking to squeeze every single dollar they can from their budget. They’re couponing, looking for sales at every turn, and even working a side hustle. They’re all in.
Becoming debt-free is the only way to live free!
FAQ
Is it possible to live a debt free life?
Can You Live a debt-free life?
For many people, living a debt-free life is a goal that equates to financial freedom and thriving, not just surviving. All forms of debt, be it student loans, car loans, credit cards or medical debt, can be stressful, regardless of why you took on the debt in the first place. Not all debt is bad.
How do I live debt free?
If you aspire to live debt free, following a few steps — calculating how much you owe, choosing a paydown strategy, creating and sticking to a budget and formulating a plan to remain debt free once you’ve achieved that goal — will help make your debt-free dreams a reality in no time.
How can I stay debt-free?
You’ll have to make sacrifices. Getting and staying debt-free will take some sacrifices, such as cutting back on some expenses so that you can funnel more money toward getting rid of debt. On the other hand, to accomplish some goals, you may also have to consider taking on certain forms of debt, like student loans.
Is living debt-free a good idea?
Living debt-free will improve your credit score and expand your opportunities for housing and jobs. It doesn’t take long to accumulate debt, but it can take time to pay it down. That’s because interest charges pile up on top of the original debt amount.