Debt Free Living

Debt free living may be your dream, but it's not an impossible one. It is, however, a goal that will take planning, hard work and self-discipline. Here are some points to remember when pursuing the debt free life.

debt free living

Face the Music

Denial is an ugly and dangerous thing, and yet most of us would rather not think too closely about how much money we really owe. And we certainly don't want to think about what we are spending our money on. But if you want to break free of debt, you are going to have to make a realistic assessment of your debt and spending habits.

Devote a couple of quiet hours with paper, pen, and calculator. Or use a spreadsheet. Whatever you are comfortable with. Get the entire total, no matter how painful it may seem. Realizing how deep in the water you are financially is the first important step in swimming back toward the shore.

You Need a Plan for Debt Free Living

Unless you're Paris Hilton or Nicole Ritchie (and how many of us really want to be those two anyway?), no one is going to set you on a piece of land to make you pursue the simple life.

You're going to have to get there on your own. And pursuing the simple life and living off your land will require living debt free. To do that, you'll need a plan. Don't think of it as something that limits you or is a punishment. Instead, think of it as a spending plan. You're going to spend money no matter what, but from now on, you will be intentional about how you spend your money.

So devote a few hours to the project. This is a positive thing, not a negative one. I promise. Sit down with that pen and paper or your computer and a calculator and figure out how much you will have to pay each month to pay off all you owe. Make a plan to pay more than the minimum payment on each one of your debts until all have been erased.

Develop a Spending Plan

Your debt free living goal from this day forward is to never charge more than you can realistically pay off in one month. And if your current payment is already more than you can afford, then cut up your credit card. Keep a small notebook with you and keep track of everything you charge. When you have reached your monthly limit, leave your credit card at home.

Never count on that day when you get a bigger salary or inherit money from your Aunt Bessie to pay off your debt. The truth is, if you can't manage the money you are making now, you're not likely to manage it any better when you make more money. That's especially true if someone gives you money. Without a wise spending plan, that money will evaporate into thin air. For most people, the more they earn, the more they spend.

Stop Worrying About What
Other People Think

If you're trying to keep up with the Joneses, you're in trouble: the Joneses are in deeper debt than you are. With almost half of all Americans spending more than they earn and the average credit card debt per household being $58,000 according to one report, it's a given that most people live way beyond their means, spending far too much on clothing and other luxury items that they really can't afford.

Get creative instead. Shop at consignment shops or thrift stores. A friend of mine found a designer dress at a fraction of the cost. People buy good quality, expensive clothing all the time and then gain weight. I have often found items with the tags still on them

Quit eating out all the time. Instead, start cooking your food from scratch. Not only will you save money, but eating real food without all those chemicals found in fast food will improve your health and your wallet.

Instead of hiring people to work on your home, consider doing it yourself. A wealth of knowledge awaits you on platforms such as YouTube. You can gain any number of skills by watching how-to videos, and I've learned how to process a deer, paint a room properly, and reupholster furniture. You will too.

Just remember that saving money can be a positive thing. Think of it as an adventure that will lead you toward a bright future.

Related article:  How to be debt free for life.

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About the Author

My name is Sue Merriam, and I began the journey of self-reliant living more than three decades ago, which enabled me to stay home with my children. Fifteen years ago, I founded Joyful Homesteading to help others save money and face the future without fear. My goal is to give you practical, honest advice so you can save money and experience the joy of simple living. I hope you join me.

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