Ways to Attain and Maintain a Debt Free Lifestyle

 

If you are like most people, you probably dream of the time when you can be completely debt free. Every night, you wonder how it would feel to be debt free. You want this very much, but you do not know where to start. Here are a few tips how you can attain and maintain a debt free lifestyle.

 

1. Make this goal your mantra

 

Recite this over and over - "I am going to be debt-free for the rest of my life". You should tell yourself that you want to be debt free and remember this during crucial moments -- like when you just walked in a designer store that is miraculously selling everything 70% off. Bite the bullet, decide, and make the commitment.

 

2. Make a budget

 

Decide how much you must allocate for basic expenses like housing, education, food, insurance, medical expenses, and how much of your monthly income should go to your savings. After that, you can figure out how much you can afford to spend for non-necessary purchases.

 

3. Leave your plastic home

 

In other words, pay in cash as often as possible. Face it, it is easier to make purchases using your credit cards. Leave them home as often as you can.

 

4. Pay your existing debts

 

As much as possible, when you have extra money, pay off some of your existing debts so that it will be faster for you to attain and maintain a debt free lifestyle.

 

5. Choose one, chuck the rest

 

If you can, choose one credit card company and throw away the rest. It would be easier to keep track of your spending when you have only one credit card. Choose the one with the lowest interest rates and with no hidden charges.  You should keep one card with available credit on it in case of an emergency when you're away from home.

 

6. Avoid impulse buying.

 

Impulse purchases are what contribute to the debt load of most families.  You can think that buying something that makes you feel good, even if you don’t need it, is innocent enough, and by itself it is.  You do deserve some pleasure out of life, of course.

 

However, it can become a habit, which can manifest itself so extremely that after years, it can cause a huge debt problem.

 

Common impulse buys are automobiles, expensive clothes, jewelry, travel, hobbies, electronic gadgets, and recreational equipment.  Even investments and home improvements are often done impulsively, with sometimes disastrous effects.