Just imagine living a life with no debt. Stress free and relax environment. Would it possible to be free of debt even if we have a low income?

Well YES! It doesn’t matter if you have low or high income. What matters is our behavior towards money. How we behave on a 12k salary will be the same on having a 37k salary.

There are people who have low incomes that are rich and there are also people who have a high income that our poor. How is that possible? Just imagine Juan is earning half a million a month but his expenditure is almost a million peso while Pedro is earning twelve thousand peso but saving almost half of his salary.

Avoiding all the emotional distress that debts may bring means saving your health. Stress and worries are negative vibes that can create illnesses. Being debt-free means a healthier you. It also means you are being one step closer reaching wealth and financial freedom.

Knowing the 8 Habits of Debt-Free People

Saving Habits

1. Building An Emergency Fund Is A Must!
Building an emergency fund is a must. Why? Because having funds for emergency means avoiding yourself from debt with high interest rates. Having an emergency fund means avoiding all the emotional stress it brings.

2. Patience Through Delayed Gratification.
Practicing delayed gratification is very important if one wants to live a debt-free life. If we can delay buying all the luxuries and unnecessary stuff, we can learn how to be patient. Impulse buying can drain our wallets. We must realize what we want and what we need.

Knowing the 8 Habits of Debt-Free People

3. Eyes On The Target.
Most of us get tempted on spending our savings on useless things while there are people good at saving their money. How are they doing it?

The secret is, they have a crystal clear intentions. They have specific financial goals that helps them lock their eyes on their target goal.

It will be easier to resist temptation making an impulse buy if we are focus and committed on our goal such as an out of the country vacation with your friends or family.

4. Proactive With Their Finances.
Proactive people are those individuals that creates and follows a budget. They monitor their cash-flows. Both expenses and income. They do constant checking on their spending and they are always on the lookout for new opportunities.

Spending Habits

5. Spends Less Than What They Earn.
Spending less than what you need means a strong foundation of wealth building. You have extra cash for financial emergencies if you are spending less than your income. Having this habit allows you to create an investment funds. But just build your emergency fund first.

6. Never Buys Stuff To Impress Other People.
Many people buys stuff they don’t need just to impress people they hate. It’s funny but somehow a reality to most people. Others buy stuff to blend in and or follow the latest trend. People who are debt-free buy things for themselves. People don’t buy to impress others, rather, they buy things because they either need it or they want it. They don’t spend to brag, they simple enjoy what they can afford.

7. Purchases Only What Their Cash-flow Can Afford.
People suffer because they purchase things they can’t afford or they make unmindful purchases. Debt-free individuals are mindful of their expenditures. They don’t buy things is beyond their cash-flow. They buy things they can afford and the things they need.

People who doesn’t have unnecessary debt check and double-check their budget to ensure that their monthly amortization does not exceed their net disposable income.

8. Pays Attention To Details.
Debt-free people often simulate their cash-flow to have a good overview of how a loan or debt will affect their finances. They are meticulous for interest rates and other details. They don’t mind shopping around to find the best deals. Most of them delay their plans to save more money just to be in a better financial position to manage their loan.

Everyone Can Be Free of Debt

Many people are suffering and struggling with debt because of the wrong financial decisions they made in the past. Because of the wrong financial decisions they made, they learned important lessons in their lives that later on saves them from bigger financial loss. We must learn every lesson from our mistakes. It gives us countless opportunities to correct our wrong financial decisions.

With enough discipline and patience, you too can become debt-free one of these days.