In today’s consumer focused and driven world, it is not hard to find people who are debt-ridden as credit is available easily to keep the customers gratified. Still, such a group also exists who remain debt-free as they possess certain mindset and trait that keeps them away from debt and remain that way.
No Debt-free People Are Born With Such Traits
As a matter of fact, debt-free are not born with such traits, but some were lucky enough to be nurtured by parents who passed off to them these habits and outlook. But in general, people resort to a debt-free living after years of financial stress and indebtedness. Such characteristics start to form when they begin redefining and organising their financial existence.
We all know that habits die hard, but when debt-free people can do it WHY NOT YOU?
Here in this article, we walk through some of the common traits found in people who enjoy a financially stress free life and live it with purpose and clarity:
1. Target Focused and Goal-Driven
Debt-free people fix financial goals that are focused on pulling them out from debt, and manage their money related matters around those goals.
Being detail-oriented, such people pay meticulous attention towards their individual finances, and are thoroughly aware of their earning and expenditure. Because, they know where their every penny is invested, they handle their finances prudently, and are less likely to purchase anything that is beyond their means and resources.
After all, they understand that debt mortgages their future and is a kind of contracted obligation where our future earnings get sacrificed in return for quick gratification. People having a financially savvy thinking realize that several times such a transaction turns into a bargain where you are ready to put at stake everything for fulfilling a limitless desire.
2. Pragmatic and Smart Thinkers
People who remain free from debt are not tempted by marketing hypes that proclaims to them that they “deserve” the best villa or the trendiest luxury car. In fact, they are smart thinkers and are not carried away by the thought that debt is an effective means to help build the life you desire.
In a real sense, a debt-free person would not fleece out money at a double rate to purchase a designer jeans, that has similar durability as the non-branded alternatives and are willing to purchase groceries from a store-brand.
What debt free people know through their pragmatism is that debt is an addictive cycle that can restrict their scope both at present and for future. The joyful and satisfied retirees kinow this and labor persistently to wipe out debt, including their mortgage, prior to their retirement.
3. High on Discipline
Debt-free people place a high priority on staying free from debt and practice self-discpline and perform what is essential to realize that objective eveyday. Financially sound individuals stick to their budget and go for niceties only when they can actually afford them.
Their sense of fiscal discipline make them understand that frequenting less on restaurant dinners, or skipping the latest movies at the cinema halls till it is available on DVD amounts to a short-term sacrifice.
Refusing to become shopping addicts, such debt-freers control their shopping habits through discipline and save themselves from any financial calamity. Rather, they prefer to save and remain patient and do not measure their self-worth on the basis of material possessions.
Such people are well aware that credit cards are like a doubly edged sword. They realize its amazing benefits, at the same time they also know that if they are unable to make payments in full at the conclusion of every month, they will be liable for a huge penalty. This understanding promotes a postive respect that restrains them from abusing their credit cards.
# 4. Less Emphasis on Materialism
A materialistic person places an extra worth on “stuff”. They actuall borrow till they are neck deep in debt for their spacious house, car as well as vacations. People who want to avoid the debt trap are aware that money cannot buy contentment and happiness, and do not go for a hot pursuit of stuff and material belongings.
In fact, a non-materialistic person practice self-contentment with what they possess and are looking to purchase happiness. Such people lead a life of simplicity with emphasis on family happiness over hoarding of material possessions. Rather, they draw out happiness from experiences and knowledge regarding their financial security.
5. More Responsible and Accountable
While distributing their resources, household requirement are always given first preference by individuals who remain debt-free in their lives. They toil hard to ensure that genuine needs are catered to within budget, and desist from incurring debt for gratification and wants.
As they have a firm grip on their personal finances, it is less likely that will purchase anything that is beyond their means and is unaffordable. As a matter of fact, debt-avoiders act responsibly and save their money for lean times and rainy days.
Financially accountable people deter from making excuses. They understant that it their duty to keep aside funds for a contigency like a job loss or events that are not anticipated like an unforeseen accident or casualty. Short of a fatal medical problem or natural clamity, they also comprehend that existing within one’s resources or means ensures ahead that they will be in better control of their fortune and destiny.
6. Better Self-Control and Confidence
Adults are more prone to making plans and adhering to it. Actually, children follow their heart and do what they feel and desire. Someone, who does not want to invite debt have the determination to tread past a showroom exhibiting the most tempting shoes or footwear, or flat screen TV section without being an impulsive buyer. Such people display better self-control and are not swayed to purhcase something just for the reason that is for sale on that particular day.
Being wise enough, they realize that buying something is no solution to make them satisfied or feel better. This is because, they are well aware of not to purchase such things till they have solid cash. Their self-control reconciles them to wait, save, and work.
A person confident about their money plan is not worried about the views of others regarding them. They enjoy driving an old car as it does not induce payment, avoid a weekend gateway, and do not plan expensive vacations simply to post an eye grabbing photo on their facebook or Instagram. They in reality, care to take a look at rates and price tags and not only on brand names. The reason, for practicing better self-control is that they do not compete with the Joneses and showy neighbours.
And imagine that? With such unflinching self-control and confident, they release more money to fight their debts. As they pay off every debt, they grow in confidence and fiscal discipline.
7. Learners At Saying “No”
This is a favorite trait which I consider in debt-free prople. They really, know well how to tell “No”. Whether a big fat “No” to hosting a party for friends, or a night out, or for that matter a high end price refrigerator or on sale flat TV, these debt-free know the art of flatly saying “No”.
They also have the skill to inquire to themselves whether what they need now is more important than what they desire most. Learning to say “No” alters the manner you view money. You learn to exist on less than you earn which lets you keep your funds aside for retirement, house purchase or a contigency fund. You experience more financial independence that opens up greater avenues in the near future.
Final Thoughts
Though not an exhaustive list by all means, still these traits go a long way to make you financially free from debt. Begin your journey from today by walking the first step and assuming that you can change as well as take charge of your life. Handle you money effectively and lead a debt-free lifestyle to the hilt.
See how many of these traits apply to you?
