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Now that you are debt-free I have no doubt you want to keep it like. You know what freedoms feel like and you won’t trade it for anything. However, there are certain things you must do to make sure you are free forever. Hence, you have to learn how to practice debt-free living even when you are not yet financially stable.
Staying debt-free requires taking deliberate actions that will keep you away from debts. You have to make lifestyle changes just like you did when trying to get out of debt fast. These changes will not always feel good but you have to practice them. Or you might find yourself going back into living a life with debt.
Today in this post you will be learning practical debt-free living ideas. Tips you didn’t know you could practice and it will go a long way in helping you stay away from debt. Becoming debt-free is something else and staying debt-free is another thing.
Here is a random list of all the things you can do to stay away from debt.
Most times we go into debt because we don’t have money or call it emergency funds to fall back to. Hence, I will say saving money can help you be debt-free. If saving money can take you out of debt then it can help you practice debt-free living even when your finances are still low.
Saving is simply you putting money away for rainy days or emergencies. However, saving money is so powerful it not only keeps you away from debt but can help you achieve your goals such as starting a business.
Frugal is the best debt-free practice
The only way I am able to live a debt-free life is by adopting a frugal lifestyle. Frugal living doesn’t mean becoming a cheapskate, it simply means placing your priorities right when it comes to managing your finances.
Living frugally is doing a lot of this and that such as:
- Selling old stuff is something you can start doing right now. If your old stuff is too good for you to just give them away, sell them. Don’t hoard them they are of no use to you. But when you sell them you make extra money which can go into savings or other household expenses.
- Stop expensive hobbies such as crafting and golfing. These are the two are can think of right now but you know that hobby that is costing you so much money. If you don’t plan on selling those craft spend very little on them and if you are not going into the championship that golf can wait.
- Cut membership to the gym and yoga. You can keep fit without paying so much on membership.
- Shop smart with budgeting and coupon.
- Eat out less or don’t eat out a lot. Making your meals is more money-saving than eating out. You can pack lunch for work to save on meals at work.
Go thrift shopping
Thrift shopping is frugal by nature but it deserves a special spot on this list just to emphasis it importance.
There is a lot of misconception about thrift shopping or I will say a stereotype about it being for only poor people. But I will like to say I get a lot of good things in thrift shops and markets.
Maybe you are not comfortable with the used clothes part of it but you can find useful household items there.
Attend a community college
Students loan is the leading course of accumulated debts in this 21st century. The only two options not to avoid student loans are one don’t go to college which is a terrible idea, and two go to a community college which will cost you less.
I will choose the second option over and over again. Not just for writing sack, I did attend a community college. Trust me it helps with low debt accumulation.
Quality education is no doubt good but there is a good education in community colleges too. Debt-free living comes down to making important life-saving situations. Some of the decisions you will not love but they will be the best in helping you be debt-free.
How about you do it this way. Get your degree with a community college and perhaps you further to master in a private higher prestige school of your choice. I am just saying, but this will reduce the amount of debt you will have from student loans alone.
Stick to your needs
If you want a debt-free lifestyle you must sacrifice the wants and stick to the needs all the time. This means always asking yourself the question of if what you are about to purchase is a want or need.
Don’t just spend money on things you are not sure if they are really important. You will end up with regrets later and with no money to buy the important stuff when needs arise.
If you want to stick to your wants then you must take budgeting seriously.
Don’t be materialistic
Consider this a free debt advice, don’t be a shopaholic at the expenses of having more debt because you have a credit card. Buy only what you need.
Wait until you are financially stable and establish before you live the lavish lifestyle you want. But for now, be frugal, save money and start that side hustle.
Pay off Credit card
To live debt-free I believe paying off your credit card is important, don’t leave any table unturned. Credit card debt is still considered debt too and you have to settle it to consider yourself debt-free.
In the process try your best to have a good credit card score, which means you are dedicated to paying off your credit and in time for an emergency which we don’t hope for you are considered for more credit. This doesn’t sound like a debt-free advice, but life happens and we have to prepare for it the best we can.
Set money goals
Make your money work for you by setting money goals. Plan ahead of time what you would like to achieve with your income be it for the short run or long run.
Know what projects you can take on and what can wait. Plan on how much you want to save before the year runs out. Most importantly set goals that won’t stress you out and you can achieve.
Debt-free living is achievable even in times when it feels so impossible and getting credit is so easy. But when you set out your mind to live the best free life you can, you will be able to.
I have been able to live debt-free by practicing the above frugal tips and I know you can.