6 Important Habits of Debt Free People
If you’re in control of your finances credit can help you achieve your goals, if you’re not credit can be a nightmare. People who are debt free don’t fear credit because they know how to control their finances and not let debt overwhelm them; they make credit work for them not against them. Becoming a debt free person is about changing your habits and developing healthier financial characteristics. So if you’re looking to become debt free here are some of the habits and characteristics that define debt free people.
They are Goal Oriented
Having a goal makes planning for the future so much more achievable and desirable. Whether it is saving for a house, paying off your current mortgage or even planning a holiday payed for entirely with savings, set down your future financial goals and stick to them. Of course these goals need to be achievable, we would all like to be a multi-millionaire but that may be beyond our grasp.
It seems so simple yet so few people properly do it. Budgeting is the first step toward becoming debt free and controlling your finances. In order to be debt free you need to know exactly how much you earn and how much you spend. By maintaining a proper budget either on your computer at home or with a pen and notepad you can begin to keep your finances in check. Paying attention to the little details will benefit you greatly in the long run. Budgeting will help you cut out unnecessary expenses and ensure you live within your means.
They Don’t Overspend
We live in a highly materialistic society that puts pressure on people to keep up with the latest fashion and trends. However this way of thinking is a trap that can lead you further and further into debt. Debt free people spend only what they have to and are not materialistic and flashy. For example if you need a new car it is tempting to get an expensive one to impress your friends but you are far better off buying an inexpensive and economical car suitable for getting you from point A to B. Debt free people spend their money wisely and only on things they need.
They Pay Cash
Paying in cash ensures that you can’t spend money you don’t have. By avoiding credit cards you can physically keep track of what you’re spending and not blow out your monthly budget without realising. If you take $200 out of the ATM aiming to spend only $50 for dinner and you wind up spending $80 you know you’ve overspent however if you use a credit card instead it much easier to lose track of your spending. Using cash whenever you can will ensure that you are much more likely to keep your finances under control.
They Have Patience
We all have things we desire and goals we are looking to achieve. Debt free people are willing to wait to achieve these goals and buy the things they want when they can afford them. For example if you see are dress or a suit that you would really like a debt free person will wait and save the money so they can buy the clothes in cash, on the other hand people who fall into debt will buy the things they want immediately and have to deal with the consequences later. We all know someone who is still paying off a holiday they took two or three years later, the fun is long gone but the stress and headache is still there. Patience is a virtue and one that will put you on a path to a debt free future.
They are Stress Free
There is nothing more stressful than being in debt and having your finances spiralling out of control. Being in debt can have you up at night worrying about the future of you and your family or panicking every time you receive a call from a private number thinking that it’s a debt collector calling. Debt free people live without this stress. They realise that all of the unnecessary expenses, flashy possessions and holidays they couldn’t afford aren’t worth the stress that you experience down the road when you are repaying the mistakes of the past. If you want to become stress free you must first become debt free.
Fox Symes is the largest provider of debt solutions to individuals and businesses in Australia. Fox Symes helps over 100,000 Australians each year resolve their debt and take financial control.
If you are in debt and want to know more about the solutions available to you contact us on 1300 098 127.