Do you often wonder what life would be like without debt?
Are you dreaming of a life free from debt? Before you can start on your road to financial recovery, you need to set a goal. You need to visualise exactly what would make you happy and the best way to do this is to picture someone who is living debt free.
Unfortunately there is no exhaustive list or set criteria you can follow to achieve financial success. But debt free people do tend to share common characteristics which you can keep in mind on your journey to get free from debt.
1. Debt free people pay attention to detail.
Anyone living a life free from debt has a total handle on their finances. You can easily do the same by establishing a budget.
Debt free people always pay close attention to their finances. They know exactly how much money they have, how much they need to spend, and when they need to spend it. For a fantastic budgeting software program visit www.saveonbills.com.au.
2. Debt free people think about their future
Bad debt could have a serious impact on your future. The ability to borrow money, buy a phone or even rent a video could be hindered by a lingering debt.
Debt free people understand this and in most cases would rather sacrifice instant gratification to avoid a life-long servitude to your debts.
3. Debt free people are practical people
Most people need a car to get from A to B. So why sign up to years of debt purchasing a brand new BMW when a second hand Corolla would be just as practical?
People living a life without debt apply this philosophy to the clothes they buy and the food they eat. Look at no-name products and generic brands to save money of everyday costs.
4. Debt free people are self-reliant
To live debt free you can’t rely on others to help you out when times get tough.
Instead, debt free people squirrel away their dollars, establish emergency savings funds, live by their budget and spend within their limits.
5. Debt free people don’t shop as a hobby
Having money can give you a rush and spending it can give you an even bigger one. Debt Free people don’t get this feeling.
They spend only what they need to on carefully thought out products itemised in a budget. This includes clothes and gifts. If you get a buzz from shopping you will have to develop a new hobby when you get debt free, like sailing or baking.
6. Debt free people wait
Being free from debt doesn’t mean you can’t spend money. It just means if you want to spend a lot of money on a new TV or bike you are going to have to wait for it.
If the money isn’t in your budget, figure out how much you will need to set aside each week and wait until you can afford your purchase before you buy it.
7. Debt free people don’t have credit cards
They just don’t need them. People living free from debt can afford to pay all of their expenses with their own money.
They plan ahead with their budget and with their savings account, even if they are caught out by an unexpected expense, they can afford to cover it.
8. Debt free people live within their means
We would all love to live in a big house with a pool and own a dog and a fancy car. But realistically, that kind of lifestyle is just not affordable for everyone.
Debt free people live in affordable accommodation, drive affordable cars and buy affordable possessions. If this means making a few small sacrifices, then so be it.
9. Debt free people are accountable
If a person free from debt was to suddenly fall into debt, they would have no one to blame but themselves. If they were to lose their job, they would have a rainy day fund available until they found a new one.
If the interest rates goes up, they would be able to adjust their budget to afford the new repayments. Debt free people don’t go around blaming anything else for their situation. It’s all on them.
10. Debt free people are happy
They don’t need expensive possessions to enjoy their life. Debt free people find joy in family and friends, not in accumulating material possessions which will grow out of style.
Because they are on top of their finances, they don’t need to worry about money, leaving them time to enjoy life and all it has to offer.
You can be a debt free person too
If you want to live free from debt, call Debt Rescue on 1800 00 3328. The experienced Case Managers will find a positive solution to your financial situation so you can be a debt free person too.