5 Traits All Debt-Free People Possess
Managing personal finances comes easily to some while others constantly struggle to keep their affairs in order and their bank accounts in check. Noticing the vast differences between those who habitually keep themselves in the black and those who constantly struggle to get out of the red, Money put together a list of common characteristics of debt-free people. No matter their income, debt-free individuals all share these money-managing traits, so if you're struggling to pay your credit card off in full each month, take a cue from the below and you'll be on your way to financial freedom.
To ensure you aren't overspending and stretching yourself beyond your means, you actually have to keep track of, you know, how much you're spending. Debt-free individuals track their expenses, keep an eye on their debit card charges, and regularly check in on their credit card balances to keep themselves on track and know when to decline an expensive dinner invitation.
Those who fully support themselves take pride in their financial freedom and focus on maintaining it by living within their means and saving part of their income in case of an unforeseen emergency or expense.
Now, we understand this can be a tough pill to swallow, but constantly shopping and purchasing for the thrill are rarely good for your wallet. The debt-free set is patient with purchases and carefully weighs the costs and impact before handing over that plastic at a shop. Even small purchases can add up fast and put you over the edge.
Debt-free individuals realize their self-worth is not defined by their handbag or new area rug. They know that wearing the same dress to two weddings is perfectly acceptable and overspending on possessions will not guarantee success.
Credit cards come with great power but also great responsibility. Sure, it can be thrilling to put an all-inclusive Mexican vacation on your credit card and not immediately see a dent in your checking account, but as debt-free people are aware, you should still be paying off that amount in full at the end of the month, so if you can't do that, say adios to Mexico.
For five more characteristics of the debt-free, head to Money.
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Opening photo: Le 21ème