4 characteristics of debt-free people

Last year, the average household credit card debt in America was estimated at $5,000. That may not seem like a huge number, but that much debt can be a very difficult mountain to climb. So, what is it about those who live debt-free? What are they doing right? Here are a few characteristics of debt-free people that you may want to embrace…

They set goals: When it comes to spending and saving your money, goal-setting is the key. Your weekly budget should be an easily attainable goal for you. If you’re having trouble keeping with it every week, it’s probably time to reexamine it. When it comes to saving, you have a purpose. Every time a check comes in you should be putting money into retirement and your emergency fund. If there is a large purchase you want to make, you should put that money aside until you have enough and then move on to your next goal.

They have self-control: It’s easy to buy something on a whim, especially when it’s inexpensive. But those small purchases can really add up when you’re constantly giving-in every time you have the impulse to buy something. You’ll have to start saying no to yourself if you really want to live debt-free.

They don’t care about “things”: It’s tempting to try and keep up with the Joneses. You may be jealous of your neighbor’s new SUV, but if you want to live debt-free, you have to realize that it’s just “stuff” that you don’t really need. Having the latest, greatest technology is cool, but you’re going to have to be okay with having older “stuff” if you want to live debt-free.

They live below their means: If you budget your paycheck as if you’re making less than you do, it’ll be easier to save for the things you want, and you won’t have to put yourself in debt to get them. It may not always be easy to cut back, especially if you have a big family, but every little bit counts. The more you save, the more you’ll have for your future. And that will be a future that is debt-free.


John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. Through news, community, press, jobs and events, he keeps credit unions digitally informed throughout the day. Web: www.cuinsight.com Details