The beginning of the year heralds glad tidings. Along with the advent of a fresh year, this is
when many of us come up with New Year’s resolutions – to quit a bad habit, to lose weight,
to save more money, to buy that dream car, to travel overseas, and so on.
A good new year resolution to try and achieve is being debt-free. We all know that we could
use the additional money from our income instead of using it to pay off a debt. How to go
about it?
AKPK shares some common personal traits of debt-free people.
1) They are detail oriented and very organised
Debt-free people pay close attention to where they are spending their money and have an
efficient budget to track where their money is going. They will not miss the opportunity to
look through every bill carefully on a monthly basis – and will notice a recurring fee by
scrutinising their credit card bills. So start paying close attention to where your money is
being spent and organise your bills.
2) They save
Every time a debt-free individual receives a sum of money, he will pay himself first. Debt-free
people have adequate emergency and retirement funds.
3) They operate within a strict budget
It is unlikely for debt-free individuals to go on wild shopping sprees. If they can afford it, they
will spend the money. Otherwise, they will forego it or wait until they can afford to buy it.
4) They are well informed
Debt-free individuals know financial products well – they are aware of the charges incurred,
due dates and other technicalities of taking a loan. By doing this research, debt-free
individuals can decide whether a loan is necessary or not for a particular big ticket purchase.
5) They are patient
Instant gratification is one of the reasons why people may face debts – making impulsive
purchases are debt’s best friends. Debt-free individuals are patient, because they know that
those purchases can wait and delayed gratification is usually more satisfying.
6) They are responsible
Getting out of debt takes a sense of responsibility and maturity—two traits that match up well
with patience. Maturity has nothing to do with age. Some 50 year olds still treat money the
same way they did when they were 20. Debt-free individuals are responsible; they want to
get out of debt as fast as possible so they can begin saving, investing, and paying off their
debts early.
7) They are not materialistic
Debt-free individuals are not gadget freaks, crazy for wheels or avid toy collectors. Debt-free
people might like nice, shiny toys but they don’t define themselves by their possessions.
They realise that materialism can affect any of us and choose to ensure they are spending
their money right.
8) They are confident
People who are getting out of debt don’t care what others think and are not out to impress.
Getting out of debt can require drastic lifestyle changes, which means you’ll never succeed if
you aren’t confident in your decision to find financial peace.
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