One of the best things a person can do to secure peace of mind in this uncertain economy is to stay away from debt. It’s all too easy to go into debt and very difficult to get out, but if you are careful and hard-working, you stand a much better chance of being among the ranks of happy debt-free people. These are five traits that people free of debt tend to have.
Commitment to Saving
It may be difficult to sock away money when there are so many things to spend it on, but those who stay out of debt make saving money a priority. You can do the same by simply setting aside a certain amount of money from each paycheck and putting it into a separate account. You can even have it set up so that it is withdrawn automatically. Even if you only contribute $50 a week, that money adds up quickly and is an invaluable cushion to have.
Avoidance of Credit Cards
While having one card is a good idea for emergencies and larger purchases such as cars, don’t be reeled in by the constant offers for credit cards. The more you have, the more difficult it will be to keep track of them all. Paying with cash makes it much easier to live within your means instead of buying things impulsively when you really don’t have the money to cover them.
Focus on Debt Reduction
Debt happens, but those who have a lifelong commitment to being free of debt prioritize the payment of these debts as soon as possible. Faber Inc recommends that if you have a medical emergency and need to use the credit card, get that amount paid off quickly instead of letting the interest pile up over the following months. Don’t just pay the minimum; pay as much as you can afford.
Reduction of Unnecessary Expenses
In a consumer-driven society, there’s no shortage of ways to spend money. Little expenses like four-dollar coffees and designer clothes add up very quickly if you aren’t careful. Carefully consider every purchase you make. Making a budget can be very helpful in making you see where all of your money is going and ensuring that it is used well. Setting aside a certain amount of cash for unplanned expenses each month is a good way to limit frivolous spending.
Willingness to Work More
People determined to avoid debt are willing to work very hard to get out from under its shadow. Taking on an extra job or two for part-time work is a sacrifice they are willing to make, and you should, too. Even if it just means taking the odd babysitting job or writing a few articles online, there are many ways to make extra money.
It isn’t easy to live free of debt, but it can be done if you are truly committed to the effort. Get the whole family on board and see how much more relaxing life can be when debt is not a constant concern.
