There are many families living the debt free lifestyle
Even with the current cost of housing, groceries and vacation travel on the rise. It’s possible and not just for those who bring home the big pay checks. Discover the habits of successful debt free families.
how to be debt free
Living a debt free lifestyle for those on an average income is more than possible. Think about those who are really living the debt free lifestyle are families just like yours and mine. They don’t go on crazy flashy holidays fours times a year.
They don’t buy new homes every time they turn around. Their closets are full of basic wardrobe pieces. Some of them may even be thrift store items.
You need to understand that most debt free families are average and blend in. They live frugally.
Those who want you to think they are debt free and making it are the families with the new cars, the new vacation homes and planning their next holiday. These families may be debt free but nine times out of ten they are living on credit.
what makes a debt free family successful?
Daily habits and smart choices. Debt free families come in all shapes and sizes. Some may be single income or double income households. Others may own their own businesses. There is no direct blueprint that is the same. But their habits are similar.
what defines success?
Success is defined as achievement. You are successful if you have reached your goals. Success is attained by devising a plan and working everyday to achieve the wanted results.
Being successfully debt free means you have worked hard to pay off your debt. You have paid off your credit cards, your student loans, car loans and mortgage.
Success is not formed or achieved over night it requires work and a plan.
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7 Habits of Successful Debt Free Families:
1. They live by a budget
I know budgets sound big and scary so start small. Gather up your receipts and bills from the past two weeks. Figure out how much money you have coming in over the next two weeks.
Take all of this information and create a budget for the next few weeks. How much goes to this bill or that bill? What can you budget for groceries? Does your income cover your rent or mortgage?
Creating a budget is simply directing your money and making it work for you. If you would like to learn more about budgeting this book is really great.
2. They have patience and they think long term
Nothing worth doing or having happens in an instant. There is planning, creation and action. Debt free families have patience in building their wealth and created a plan to pay off their debt.
Nothing happened over night.
3. They make smart choices with their money
This beautiful house came on the market and it tops our budget but… Do we want to live debt free or be owned by our house and mortgage?
Successful families know that you need to make smart choices with what you have. It’s not about the here and now, it’s about a month from now, a year from now or ten years from now.
Simple smart choices like shopping for items on sale and creating a budget will help you live debt free.
4. They generally pay in cash or with money they have
Do you know the balance on your checking account? A debt free person does. They know how much they have to spend and generally what it will be spent on.
In a world run by debt cards, credit cards and money transfers how do you really know what you actually have?
Paying in cash allows you to place a value on goods and services. Parting with $100 cash is harder than parting with a button click for $98.00.
Try it. Next pay check take out the cash for your expenses. Pay everything with cash and see how you handle your money differently.
5. They value a home cooked meal
Home cooking is cheaper than dining out. You can make an average family meal for less than $20. But take a family of four for dinner at your local restaurant and the bill may be $80 to $100.
Meal planning and home cooking are great ways to save money.
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6. They know the value of a dollar
A successful debt free person knows how hard they worked for their income. They know the value of an average good or service and will not over pay for an item.
7. They know it doesn’t have to be perfect
It’s true, life is not perfect. Do not expect perfect picture from a debt free family because life and money are complicated. There is ups and downs.
You will get real and practical habits from a debt free frugal family.
They aren’t trying to keep up or impress you
Successful debt free people are not out to keep up or impress you. They are satisfied with what they have, their budget and their plan. Do they strive for more? Yes!
They know what works for them and what does not. Will a successful debt free person share their tips? Yes, just remember what works for one may not work for the other.
Follow these habits and you will be well on your way to paying down your debt, saving money and living debt free.
Updated July 1, 2020