Living Debt Free

Do you dream of living without the burden of excessive debt hanging over your head? It’s possible, but not easy. Living debt free requires financial discipline, all the time. To become debt free and maintain a debt free life, try the following three steps:

1. Get rid of existing debt. This is obviously your first step to living a debt free life, you should be extremely mindful as to where your money is going. It’s important that you track your spending habits for a period of time in order to see where money is being wasted, or where you can cut costs without completely changing your lifestyle. Keep a notebook where you list every single item you purchase, including the amount you paid, where you purchased it, and the reason. Include all bills that were paid, how much you paid, and how much you still owe. After a few months of tracking your spending habits, you will be able to determine exactly where all of your money is going, and you may be surprised at how much your little purchases are adding up and eating away at money you could be using to pay off debt to enjoy a debt free lifestyle! That cup of coffee you grab every morning on the way to work could be costing you $10 or more each week- about $40 per month, and brewing your own coffee at home could save you considerably since you can purchase a can of coffee for about $4 and it will last you about a month!

How to Remain Debt Free after Recovery

One of the biggest mistakes people make after making a financial recovery is to allow themselves to fall back into old habits. Before they know it, they’ve racked up another few thousand in credit bills, and they’re heading down the same path to having a desperate situation where they just can’t make their payments on time each month.

You do not need to have credit cards in your wallet. Yes, it is a very odd feeling to go from having several cards available to you to none, but it is the safest way to avoid overspending. You may want to keep one credit card in a safe place in your home, for purchases that do require a credit card. Think long and hard before using the card, and if it is possible to buy it with cash, than do that instead. A credit card should not be used for every purchase, nor should it be used when you want to buy something unnecessary that you don’t have enough cash to purchase. If you want a luxury item, save your money until you can buy it- if after several months of saving you decide you don’t need it, then you’ve saved the money on an item you previously may have purchased on a credit card, discovered you didn’t really need or want it, and then had to pay back three to four times what the item is worth after all the interest and finance charges were added!