If you’ve been making plans to try to be debt-free, sometimes it helps to look at those who actually are debt-free. By learning from them you’ll find there are some easy things you can do to get things rolling in the right direction.
Pay Attention to Your Finances
It is always important to know how much money you have and where your money is going. You may be paying for things you no longer use, such as gym memberships or magazine subscriptions, which is money you could be saving.
Make a point to log into online banking and review your transactions every day. You could even save yourself a headache by catching fraud early!
When you get your paycheck, set aside a percentage to put into savings. Many people find it helpful to have a portion of each paycheck automatically deposited into their savings in order to ensure that they will not spend that money.
Others find it helpful to pretend they make less money, putting the rest into savings.
If you receive extra cash on special occasions such as birthdays and holidays, put that money into your saving as well.
Those who are debt-free make goals in order to stay motivated. When saving money, they keep in mind what that saved money will go towards. Knowing there is a reward in the form of something you want is a great motivation to be debt free.
Keep a Budget
Keeping track of your bills is an important habit. You need to know how much money you have to spend, save, and invest. Once you determine this, you’ll have a better understanding of how much flexible cash you have. This might make you realize you can’t go out every Friday night, but you’ll have more cash saved.
Think Before Shopping
You should also avoid any impulse shopping. Wait for prices to go down, save your money, and stay within your budget. Also, avoid using credit cards and use cash instead. Using your credits cards will most likely lead you into more debt.
Remember to think of everything in terms of value. Are those tickets (or shoes, or whatever it tempting you) worth delaying your goals?
A key trait to being debt-free is having confidence. Debt free people ask for their late fees to be waived and are not afraid to haggle to get the best price.
Copy these traits of other debt-free people and see the difference in your finances.