Most people assume they’d have a lot less debt if only they made more money. But in reality, debt isn’t an income problem, it’s a spending problem. You could be making $100,000 a year, but if you’re trying to maintain a $150,000 lifestyle, you’re going to end up with massive debt. On the other hand, if you make $80,000 a year and live a $65,000 lifestyle, you’ll end up with no debt and a bright financial future!
The kind of people who manage to live debt-free aren’t necessarily high-earners, but they have certain characteristics and beliefs in common. In general, debt-free people are:
- Debt-phobic. They don’t treat debt as a necessary tool, they see it as dangerous and addictive, and stay completely away from it.
- Willing to wait. When debt-free people see something they really want, instead of whipping out their card, they start saving. They know there are other household expenses that need covering first, so they wait until they can afford to pay cash for life’s luxuries.
- High in self-esteem. If you like yourself and truly recognize your talents and worth as a person, you don’t need a bunch of flashy possessions to make you feel good. Debt-free people don’t care what others think of their older car, smaller house and modest vacations. Their happiness comes from within.
- Goal-driven. Getting out of debt is one of the most important goals you can set. Accomplishing it requires a step-by-step plan and timeline. It’s not easy, but debt-free people know their goal is worth the struggle.
- Willing to sacrifice. Avoiding debt requires doing without things like expensive nights out, home theatres and the latest fashions. Debt-free people are willing to accept a little short-term pain for the long-term gain of major financial achievements, like home ownership and a secure retirement.
If you’d like some tips on becoming a debt-free person, please give us a call today!
Mortgage and Real Estate Professional
403 990 4817