Americans Who Live Debt-Free Practice These Savvy Financial Habits

Photo from JumpStory


From compounding student loans to hefty car payments, to maxed out credit card debts and delinquent tax bills, many Americans struggle with debt.

But then there are those Americans who are living debt-free – and even have their mortgage paid off.

What’s their secret? It might be simpler than you think.

If you struggle with debt, realize you are not alone.

In fact, according to CNBC, the average American carries a whopping $38,000 in personal debt (not including home mortgages).


The good news is, if you learn to model the ways of those who live debt-free, you can begin to apply the same principles to your own life.

Here are just a few financial habits of those who live a debt-free lifestyle.


They Pay With Cash

In other words – if they can’t afford it, they don’t buy it.

Sure, some people who live debt-free use credit cards – but they pay off their full balance every single month.

One of the biggest financial mistakes you can make is spending money you don’t have.

If you want to save to buy a luxury item like an updated Mac Pro – then be patient and look at your budget and put money aside each month.

Impulse buying is dangerous – and it will end up leaving you broke.


They Don’t Care About The Joneses

People who are debt-free are laser focused at remaining that way.

Next door neighbor drops $40k on a new Audi A3?

Good for them.

Financially savvy folks don’t obsess over material stuff – they’re too busy living life!

If you learn to be content with what you have (like driving an older car that is paid off), you won’t be tempted to have to always have the latest and greatest because a higher value is placed on remaining debt-free.

And should you want to get something new in the future, don’t do it until you can pay for it with cash.

If you’re focused on maintaining a “social image” and obsess over every little thing from having a $400 Yeti cooler to an $800 pair of designer shoes, you’re going to trap yourself in a spinning hamster wheel and you won’t be able to get out.

There’s always going to be someone wealthier than you.

So what?

Focus on your own budget – remaining debt-free trumps keeping up with the Joneses every single time.


They Pay Their Bills On Time

People who live debt-free are responsible, and they pay their bills on time.

They don’t have to worry about late fees, insufficient fund charges, or other hefty penalties.

If you haven’t already, set your revolving accounts and utilities to autopay.

This doesn’t mean you put them on “auto” and never look at them again…

… but it does mean you’ll never have to worry about making another late payment ever again.


They Live Below Their Means

Just because you can afford to buy something, doesn’t mean you should.

Debt-free people live out this principle to the core.

It truly is their life motto.

Could they buy a million-dollar house? Maybe.

But if it’s a retired couple of two… chances are they’ll opt for a smaller one-story bungalow house.

Why waste the money on excess space?

And since debt-free people are used to living on less, they’re prepared should a financial crisis come their way.

If you are spending every dollar you make every single month, it doesn’t give you much wiggle room should a health or family crisis enter your world.

No matter what you make, whether it’s $40,000 a year or $400,000 – plan to live on a certain percent of your income.

This way, as you advance up the career ladder or earn more money– you can still live on that same percent and invest the rest.

If you’re saddled in debt, stay tuned for more tips on how to finally get out of debt once and for all!

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