Studying the habits of debt free people may help inspire you on your journey to debt free living.
Habits are decisions we make regularly. They are routine behaviors that we do automatically. Our daily habits lead us to where we are.
If you want to live a debt-free lifestyle then start implementing the habits of debt free people.
Below are 10 habits of debt free people that you can try
1. Debt free people regularly check their bank accounts
Being aware of your bank balances, spending, and deposits leaves you with no surprises. Reconcile your bank account every month. Not only will this keep you informed of your balances and spending, but also is a good time to catch any bank errors.
2. They plan large purchases
Impulse buying is not something that most debt-free people do. Chances are that they stopped impulse buying while on their journey and found it serves them well. If you are considering a large purchase, then do just that. Consider it. Research and plan how you will pay for it without using credit.
3. Savings is a priority for debt free people
Because people who are debt-free generally want to stay that way, they have a plan to save money. Therefore they probably have a healthy savings account that allows them some security as well as flexibility for when they do have those purchases they want to make.
4. Pay attention to the small frequent purchases
It is the small frequent purchases that add up and suck away your money without you even realizing it. Debt-free people are aware of their purchases regardless of the size and typically limit those money-sucking small purchases.
5. Debt free mindset
You may notice that your debt-free friends opt-out of some invitations or maybe they don’t have the most up-to-date electronics or other material items. Maybe the cars they drive are older. Remember, debt-free does not mean a sudden increase in income. It means that you have more available income (because you are not paying your debt) that you can choose how you want to spend. A debt-free mindset is keeping a promise to yourself that you will not buy what you cannot pay for in full.
6. Live beneath your means
The basic rule is that your income less expenses cannot be a negative number. If it is a negative number then you are living above your means and that will soon catch up with you. If you want to increase your standard of living you do this by increasing your income. Debt-free people tend to live below their means.
Income minus expenses must be zero or higher.
7. Couples communicate
Couples who are on the same page about being debt-free will typically communicate more when it comes to finances. In my house, I am the money manager so I have a much better idea of where we are financially day to day than my husband does but I keep him informed regularly. Neither of us would ever buy anything expensive without discussing it first. Also, when we do want to splurge on something we create a plan together of how we will get it and then we help keep each other remain accountable along the way.
8. They teach their kids about money
What better way to teach your kids about living debt-free than to live that way yourself. When you make choices that support debt-free living your children will see that you live by your word, which is really all we ask when looking for role models. Discussing the pros and cons of using credit (yes, there are some pros) with your kids, talking to them about saving money, and evaluating their spending may help them also value debt-free living.
For more information on money management for kids, check out my blogs below:
TEACHING KIDS ABOUT CREDIT AND LOANS
9. They don’t talk about money issues
Although debt-free living does not necessarily mean an abundance of income, there is one thing I find very true about most people who are debt-free. They are less stressed about money issues. Therefore, you don’t hear many complaints regarding not having enough money to pay for bills. When an unexpected expense occurs they generally can take care of it without much anxiety.
10. Debt free people think long term
Debt-free people tend to think long term. They have a vision and they create their goals to make that vision come true. They are not willing to sacrifice their vision by going into debt for something spontaneous.
In summary
Incorporating some of these habits of debt-free people into your own life can not only help you along the way to being debt-free but can also help you stay debt-free. Once you are there, you will never want to go back.
Thanks for reading!
Stay balanced,
Jill