I saw an article on Yahoo earlier this week HERE.
It is a list of 10 traits that Debt-Free people have.
The author states that in order to be debt-free you need to think and act as those who are debt-free.
There are many lists of ways to improve your life out there, but I thought this one was pretty spot on.
At least, these are habits that I have made my own and I have been totally debt-free since March 15 2007.
Here's a brief synopsis of the list in my own words......
1. They pay attention to the details.
If you want to be Debt-free, pay close attention to the details of your money. Things like always checking your account statements, reconciling your statements each month, always recording withdrawal/deposits/debits. If you have auto withdrawals coming out of your accounts, keep an eye that they are accurate. Keeping an eye, as well, on your credit card statements that all purchases are correct. Stay on top of payment due dates and avoid overdraft fees. Pay off your credit cards each month to avoid interest charges. Debt-free folks avoid late fees, overdrafts and interest charges whenever possible.
2. They understand their finances.
Not everyone has a finance or accounting degree or knows tax law inside and out. But even if you can't do all the legal/tax/investing work concerning your money, you make a point of learning as much as you can, so you can understand what your financial planner, tax expert/preparer, stock broker, insurance agent is telling you. Debt-free folks never just hand over their financial information to another to manage blindly. They have some level of knowledge about all things financial and ask questions if they don't understand something. They never make financial decisions without knowing something about that decision first.
3. They live on less than they make.
Debt-free people know exactly how much they bring in each month or year and make a point to live below their means. They know where their money goes each month because they put it on paper and tell their money where it is to be spent(or saved). They know they need money for unexpected emergencies and they know they need to think about their future(retirement), so they plan to live on a percentage of their income each year instead of squandering their whole paycheck every month.
4. They plan for the long term.
Debt-free people don't just live for today, they think about their tomorrows. Because they live below their means, they can accomplish saving for their financial future. This takes a lot of discipline and avoiding instant gratification in a society that only values the "here and now". Some times debt-free people feel at odds with our society and are often labeled freaks. Wave that freak flag proudly! 8-)
5. They aren't afraid to be bold.
Debt-free people aren't shy about asking others how they achieved a goal that is worthwhile to them.
If you want to be debt-free and you know someone who accomplished some financial goal, ask them about it, and then apply that advice to your situation. That's probably how a debt-free person got there.....they saw or asked how others who were debt-free did it and applied those same principles to their own lives.
Be curious how people you know, who have won with their money, did it and don't be shy about getting some tips from them.
6. No amount of money is too small to save it.
Debt-free people know that any little bit you put away for tomorrow will help you reach your financial goal. $10, whether from your regular paycheck or some unexpected windfall, may not seem like much and not worth putting toward retirement savings so you may be tempted to spend it on some frivolous want now. But getting into a habit of putting into savings regular small amounts can add up over the long haul(yah for compounding interest!).
7. They set goals and can see the "Big Picture".
Debt-free people set goals, both short term and long term. They have more focus because of their goals. Like the snowballing debt principle(paying off debts helps you build momentum toward paying off More debt), setting financial savings goals helps you to keep moving forward with your money. You reach one goal and that helps you stay focused on reaching the next goal. All these interim goals eventually add up to your complete financial plan for your life. Debt-free people don't like surprises, especially where their money is concerned.
8. They can say No to their wants or find ways to satisfy them cheaper.
Debt-free people are good at telling themselves no yet not feeling like they are sacrificing all the joys in life. They can deny themselves many of the "lifestyle inflation" wants in our culture that end up sucking up all that extra money people make as their salary increases. It is very frequently that as people make more money they spend more money. Debt-free folks are able to avoid letting their lifestyles expand at the same rate(or even a higher rate)as their salaries do.
Yet they are still able to satisfy their wants and have a balanced life by finding ways to enjoy the fruits of their labors in less expensive ways. Find the priorities in your life and make trade-offs to achieve what is important to you.
9. They know what everything costs them, not just in money.
Debt-free people know the value of a dollar. They understand how hard it is to earn those dollars and how much of their life everything they have to pay for costs them. When you think about that $500 designer purse you lust after as not just $500 of your money, but you having to work for 30 hours for to afford to buy it, does it still feel so appealing versus 30 hours of your life? If you stop buying $500 purses, how many less hours over the course of your lifetime could you work and be able to do some activity you enjoy more than working? Could you have retired years earlier if you didn't spend money on "things" you don't really need and spent your time how YOU wanted to instead of slaving for a boss?
Debt-free people know that things cost you in time out of your life, not just in money. Money is merely a tool to get you somewhere you want to be in life. The hours of you life are FINITE so spend those judiciously.
10. Their values are different from most of society's values.
The majority of debt-free people value people more than things. I'm not talking about the 2nd generation wealthy who have always had wealth, though some of them also value people more than things. Most Debt-free folks have different priorities in life than our society. Money is not the "end all" and "be all" in life. Sure money is important, but it is just a tool. A too that when used effectively can help give you a happier life. It can take care of some problems in your life and keep stress away when you have enough money to avoid financial problems in life. It's a tool to give you time with the people you love and help you to keep them healthy and happy and use it to make their lives better.
So what do you think of this list?
Doable?
Or a Load of bullshit?
I didn't always have these habits.
They have evolved over the years.
Some where naturally easier for me to take up and some have been difficult......very difficult in some instances. Like the money only being a tool to happiness and not the end goal in life, to just have money.
These aren't hard things to do if you just keep trying them.
They say an action only becomes a habit once you've stuck to it for 30 days or so.
That's all it takes to get it to become routine in your life.
Anybody can form a habit at any time in their life by just sticking to it for 4-6 weeks.
But it's all about WHAT we want to become our habits.
Try picking one of these 10 characteristics above and focus on making it a habit in your life for the next 30 days.
If you need support don't be afraid to ask someone for help too to keep you on track either.
If you want to be debt-free DO what the debt-free do.
A better life is in your hands!
So why not start now toward the life you want.
Sluggy
It is a list of 10 traits that Debt-Free people have.
The author states that in order to be debt-free you need to think and act as those who are debt-free.
There are many lists of ways to improve your life out there, but I thought this one was pretty spot on.
At least, these are habits that I have made my own and I have been totally debt-free since March 15 2007.
Here's a brief synopsis of the list in my own words......
1. They pay attention to the details.
If you want to be Debt-free, pay close attention to the details of your money. Things like always checking your account statements, reconciling your statements each month, always recording withdrawal/deposits/debits. If you have auto withdrawals coming out of your accounts, keep an eye that they are accurate. Keeping an eye, as well, on your credit card statements that all purchases are correct. Stay on top of payment due dates and avoid overdraft fees. Pay off your credit cards each month to avoid interest charges. Debt-free folks avoid late fees, overdrafts and interest charges whenever possible.
2. They understand their finances.
Not everyone has a finance or accounting degree or knows tax law inside and out. But even if you can't do all the legal/tax/investing work concerning your money, you make a point of learning as much as you can, so you can understand what your financial planner, tax expert/preparer, stock broker, insurance agent is telling you. Debt-free folks never just hand over their financial information to another to manage blindly. They have some level of knowledge about all things financial and ask questions if they don't understand something. They never make financial decisions without knowing something about that decision first.
3. They live on less than they make.
Debt-free people know exactly how much they bring in each month or year and make a point to live below their means. They know where their money goes each month because they put it on paper and tell their money where it is to be spent(or saved). They know they need money for unexpected emergencies and they know they need to think about their future(retirement), so they plan to live on a percentage of their income each year instead of squandering their whole paycheck every month.
4. They plan for the long term.
Debt-free people don't just live for today, they think about their tomorrows. Because they live below their means, they can accomplish saving for their financial future. This takes a lot of discipline and avoiding instant gratification in a society that only values the "here and now". Some times debt-free people feel at odds with our society and are often labeled freaks. Wave that freak flag proudly! 8-)
5. They aren't afraid to be bold.
Debt-free people aren't shy about asking others how they achieved a goal that is worthwhile to them.
If you want to be debt-free and you know someone who accomplished some financial goal, ask them about it, and then apply that advice to your situation. That's probably how a debt-free person got there.....they saw or asked how others who were debt-free did it and applied those same principles to their own lives.
Be curious how people you know, who have won with their money, did it and don't be shy about getting some tips from them.
6. No amount of money is too small to save it.
Debt-free people know that any little bit you put away for tomorrow will help you reach your financial goal. $10, whether from your regular paycheck or some unexpected windfall, may not seem like much and not worth putting toward retirement savings so you may be tempted to spend it on some frivolous want now. But getting into a habit of putting into savings regular small amounts can add up over the long haul(yah for compounding interest!).
7. They set goals and can see the "Big Picture".
Debt-free people set goals, both short term and long term. They have more focus because of their goals. Like the snowballing debt principle(paying off debts helps you build momentum toward paying off More debt), setting financial savings goals helps you to keep moving forward with your money. You reach one goal and that helps you stay focused on reaching the next goal. All these interim goals eventually add up to your complete financial plan for your life. Debt-free people don't like surprises, especially where their money is concerned.
8. They can say No to their wants or find ways to satisfy them cheaper.
Debt-free people are good at telling themselves no yet not feeling like they are sacrificing all the joys in life. They can deny themselves many of the "lifestyle inflation" wants in our culture that end up sucking up all that extra money people make as their salary increases. It is very frequently that as people make more money they spend more money. Debt-free folks are able to avoid letting their lifestyles expand at the same rate(or even a higher rate)as their salaries do.
Yet they are still able to satisfy their wants and have a balanced life by finding ways to enjoy the fruits of their labors in less expensive ways. Find the priorities in your life and make trade-offs to achieve what is important to you.
9. They know what everything costs them, not just in money.
Debt-free people know the value of a dollar. They understand how hard it is to earn those dollars and how much of their life everything they have to pay for costs them. When you think about that $500 designer purse you lust after as not just $500 of your money, but you having to work for 30 hours for to afford to buy it, does it still feel so appealing versus 30 hours of your life? If you stop buying $500 purses, how many less hours over the course of your lifetime could you work and be able to do some activity you enjoy more than working? Could you have retired years earlier if you didn't spend money on "things" you don't really need and spent your time how YOU wanted to instead of slaving for a boss?
Debt-free people know that things cost you in time out of your life, not just in money. Money is merely a tool to get you somewhere you want to be in life. The hours of you life are FINITE so spend those judiciously.
10. Their values are different from most of society's values.
The majority of debt-free people value people more than things. I'm not talking about the 2nd generation wealthy who have always had wealth, though some of them also value people more than things. Most Debt-free folks have different priorities in life than our society. Money is not the "end all" and "be all" in life. Sure money is important, but it is just a tool. A too that when used effectively can help give you a happier life. It can take care of some problems in your life and keep stress away when you have enough money to avoid financial problems in life. It's a tool to give you time with the people you love and help you to keep them healthy and happy and use it to make their lives better.
So what do you think of this list?
Doable?
Or a Load of bullshit?
I didn't always have these habits.
They have evolved over the years.
Some where naturally easier for me to take up and some have been difficult......very difficult in some instances. Like the money only being a tool to happiness and not the end goal in life, to just have money.
These aren't hard things to do if you just keep trying them.
They say an action only becomes a habit once you've stuck to it for 30 days or so.
That's all it takes to get it to become routine in your life.
Anybody can form a habit at any time in their life by just sticking to it for 4-6 weeks.
But it's all about WHAT we want to become our habits.
Try picking one of these 10 characteristics above and focus on making it a habit in your life for the next 30 days.
If you need support don't be afraid to ask someone for help too to keep you on track either.
If you want to be debt-free DO what the debt-free do.
A better life is in your hands!
So why not start now toward the life you want.
Sluggy
