How to Practice Debt-Free Living

When it comes to money and our finances, one aspect that has not been given much attention is our mindset toward it. We know from psychology that behavior, whether about money or anything else, is greatly influenced by our thoughts, beliefs, emotions, and attitudes. Our financial habits are no exception.

How we choose to spend or not spend money is directly linked to what we believe and how we view money. All of this has been shaped by our upbringing, fears, past experiences, and education. Our understanding of money and financial matters also influences our relationship and understanding of debt.

In America, debt has been seen to be a way of life. Most people and households are living with debt because, for the longest time, it has been taught and believed that one cannot function or live without debt. This is not true. A debt-free life is possible, it’s not easy, but it is possible.

Each person’s journey with debt is different and it is important not to blanket everyone’s reasons for debt, however, it is of vital importance for us as individuals to ask ourselves honest questions about why we are in debt and how we can achieve debt-free living.

Below are some common reasons why people find themselves in debt.

• Student loans.
• Unplanned expenses.
• Lack of financial literacy.
• Job loss.
• Impulse buying.
• Consumerism.
• Gambling and addictions.
• Income loss due to disasters or emergencies.

How to live debt-free

Go against the grain

Dave Ramsey is quoted as saying “Debt is normal so be weird!” It has almost been ingrained in us that it is impossible to live without debt unless you are super rich, but that is simply not true.

With the right education and changing attitudes and beliefs, many people are choosing to live debt-free. This is the time to challenge what society or our upbringing has taught us about debt, it may mean it is time to face our own beliefs and fears about money and change.

Invest in financial literacy

Financial literacy is so important. Sometimes we find ourselves in debt and financial stress because we lack the necessary tools and knowledge to make the right decisions.

It’s never too late to start learning about money and how to manage it properly. Again, this is not something reserved for the supper rich, whichever financial bracket you fall into, invest in learning about the tools that apply to your situation.

Stay in your lane

Our earning abilities will always be different. This means that if we live a life free from comparison, we are better able to live a debt-free life as we aim to live within our means.

In the world of social media, we are constantly bombarded by the lives of those in our circles living the best lives. By accepting that we are all in different financial brackets we alleviate the pressure of wanting to keep up because it is in this need to keep up that we find ourselves in debt.

Practice self-control

Practicing self-control goes a long way in achieving a debt-free living. There is so much we want in life but if we have the mental strength to deny ourselves those things we can’t afford, we have a much greater chance of living debt-free.

This is when people commit to only buying those things they can pay for in cash. This might mean downgrading one’s car and getting rid of all those credit cards. Certain lifestyle changes might be necessary for one to live debt-free.

Pay off debt

If you are already in debt and want to live debt-free, it is vital to start working toward paying your debts, especially those high-interest ones. Access your total current debt so that you are well informed. Figure out where you might need to cut expenses to start this process. Sometimes you might need the help of a financial advisor or debt counselor to get you started as it might feel overwhelming.

Side hustle

This is a term that’s being used a lot to mean looking for other ways of increasing one’s income. Many people have come up with creative ideas on how to maximize their time, education, skills, and talents to bring in extra income. When we increase our earning potential, we increase our chances of paying off any debt we might have and start a life of saving and investing.

Contact us for assistance

Living with debt can be a huge weight on our shoulders. Starting the journey to try and find out what debt-free living could look like can be a freeing experience. At The Colony Christian Counseling in Texas, if you get in touch, we create a safe space where we will provide you with the right professionals to help you with your journey to financial freedom.