Thinking about leading a debt-free life could start pretty early for some guys. You can recognize those financially clever guys who went to community college while driving a cheap used car – which most of us laughed at, myself included – only to realize years after that we’re working our asses off to pay a mountain of debts while they get to travel a lot and live a debt-free life.
Good thing it’s not always late to start clearing up those debts and live a financially freer life.
Start saving up!
Remember your ma when she constantly told you to save up your allowance if you want to do something with your life? Well, the lady was right. If you want a debt-free life, then you need to start saving up baby. Did you know that a lot of us are only a life event away from bankruptcy and total debt? One serious illness. A car accident ala Dr. Strange. Getting sacked. That’s all it takes to lose everything you’ve ever worked hard for…unless you have a large enough savings.
What is “large enough” you ask? Large enough means you can stop working for six months to a year and still continue your current lifestyle. That way, once this unfortunate event comes, you don’t need to borrow money in order to survive.
Pay off your credit card transactions immediately…or better yet, stop using credit cards altogether!
One word: interest. That’s the life line of credit card companies. And unless you want to make banking guys really fat and filthy rich, then it might be high time for you to consider how you swipe that card. If you can’t cut it in half just yet, then you should definitely pay off all your transactions immediately, and never EVER miss. If you think you can’t pay for it, then don’t swipe it!
Spend less than what you earn.
I guess I don’t need to say this anymore, but let me just repeat it so we don’t forget. No one should ever spend more than what they earn. That’s a guaranteed way to debt hell if you do. Something to think about before you purchase the next item on your eBay wishlist.
I know, these tips are easier said than done, but they are not impossible to achieve. Living a debt-free life, after all, just requires self-discipline. That’s all there is to it. Live and prosper!