Living debt free in today’s world feels like a dream. The current economic climate, coupled with the aftershocks of the pandemic, makes living a debt-free life feel unattainable. And understandably, hardly had the world bounced back from the mass layoff than the economy hit the fan. Since many people have already worked their way down with their savings, many outsource loans and other debt options to stay afloat. But even in the turmoil of debt, the hope of debt-free living still lingers in the hearts of many. This piece will address the core of a debt-free life and some tips on attaining it.
5 Fundamental Principles of Living Debt Free
The reality is you do not just wake up one day debt free. It is, in fact, not easy. Hard work, delayed gratification, and laser focus on your goals are essential to eliminating debt and exploring debt-free living. Additionally, you will need five fundamental principles to get you there. Let us look at them below.
1. Consistency
Consistency envelopes your entire debt-free journey. To get to your destination faster and without setbacks, practice consistency in your financial habits. From savings to debt repayment, if you plan to save monthly or make payments to your creditors every bi-monthly, ensure you stick by the plan. Remain consistent with payment until the debt is paid in full, then work your way through other financial obligations with periodic payments.
2. Timeliness
For everything, you should pay to stay on top of your schedule. Late payments on bills and debt payments tend to accumulate penalty fees which only mean deeper trouble for you. If you are worried about forgetting to make timely payments or payday temptations, initiate automatic redirection of funds. The bank will trigger payment to all lenders and bills when the money hits your account.
3. Justification
Mindless spending is at the core of your debt problem; thus, ensure that every dollar leaving your account is justified. Cultivate a ‘buy what you need and not what you want mindset with your spending. This will ensure you remain focused on your goal to eliminate debt. Draw up your needs and wants, and make a priority list of the things you can do without. You will get a clear view of the bigger picture through delayed gratification. Suspend using your credit cards for a while and stick to online grocery, hoping to avoid unnecessary spending.
4. Documentation
Keep a record of everything, from your finances and expenses to spend. Realizing a debt-free life requires you to get specific with your goals. Create a detailed plan for your debt-free life, what it means for you, how to get there, your resources, and a timeline. Start budgeting and keep a record of all your spending; create a detailed debt repayment plan and start working through it.
5. Accountability
Holding yourself accountable for every financial move is key to realizing your drive to debt-free living. Through self-discipline, follow through with all plans and remain responsible for every action you take. Before making any financial decision, ask yourself, ‘Is this the best decision for you?’ ‘Does this step bring you closer or further to your debt free living plan?’ These and similar questions will help hold you accountable for every financial move.
Summing Up
Living a debt-free life does not have to feel far-fetched. If others can do so, so can you. These fundamentals put together the art of debt-free living with a few elements and practices. Carry them with you and watch your financial goals come together.