Explaining the Secrets of People Who Are Debt Free
There are plenty of people who are earning an average salary and are debt free and in reality closer to financial freedom than some people who are making millions and are barely able to keep up with the excessive debt that they have. So, what is the secret to becoming debt-free?
Even though there is no single defining attribute that makes a person more successful at managing their personal finances than others, below are five behaviors shared by numerous debt-free individuals that help them stay financially safe.
They are well organized and disciplined: Individuals that are debt free know that buying things they can’t afford now means they will have to pay even more in interest later and that the immediate satisfaction is rarely worth the premium. They will rarely take a loan except in extremely rare scenarios like a mortgage to buy a home. However, if they do, then they more often than not pay it off as soon as possible. Financially intelligent individuals know that, in most scenarios, it is always better to save before spending, instead of the other way round.
They are practical: Individuals that are debt free are realistic and know the true meaning of value. Cars are only a means to get from one point to next, and they don’t care about specific brands. The quest of luxurious cars and goods gives you momentary happiness that disappears once you have them in possession, at an often unjustifiable price. Now I’m not telling you to stop ogling those Coach bags, I wouldn’t recommend putting yourself into debt for one. Furthermore, people that are debt-free are more likely to purchase store brand groceries, even though they’re not the most striking on the shelf. There is no reason to spend more for a packaging you’ll throw away anyhow.
They are self-sufficient: Individuals that are debt free push towards financial freedom and triumph in their self-sufficiency. They always live within their means, and they know not to ever rely on others even when times get rough.
They are patient: Individuals that are debt free don’t rely on in instant satisfaction, and they are always on the lookout for the top deals in town. More often than not they won’t buy stuff at full price and they regularly search for coupons to get more for their money. Also if they money isn’t, they’ll save before purchasing.
They are creative: While credit cards can be bad for those who already have debt, financially intelligent individuals, embrace them as money saving tools. As long as you know how to use credit cards all of the cash back, bonuses and discounts can add up to a lot of savings.