You might be surprised to learn that there is one significant difference between these two sets of people. What is it? Their mindset. That’s right. Whether you stay debt-free or not has more to do with the way you think, than with the amount of money you earn.
Here are 5 things that most debt-free people have in common:
They Are Determined
It all starts with determination. At some point, debt-free people have consciously decided to get out of debt. They’ve worked hard at reaching that goal, and they do everything in their power to avoid being trapped into the debt-cycle again.
They Devise a Plan and Stick to It
Debt-free people set financial goals, and they go about reaching them in a methodical way.
What this means is that to get out of debt, you need a plan. You must know how much money you owe, how much you are earning, and how much you spend. In other words, you need to budget.
They Think Further Ahead
People who manage to get out of debt are those who think ahead. For instance, they may make a list of all the reasons they have for wanting to get out of debt, or they might visualize how good it will feel once they reach their money goals. They also take the time to ponder the financial consequences of their actions, especially when it comes to their spending habits. The idea here is that if you are to get out of debt, you must look past the present.
They Say No to Consumerism
Debt-free people don’t follow the masses. They refuse to buy into the whole consumeristic attitude that pervades our society. This means that they don’t let themselves be influenced by publicity and by what other people have. They buy things because they genuinely need them, and not merely because they want them.
They Live Below Their Means
Debt-free people play tricks on their minds, but in a good way. When they spend money, they do it as if they have less money than what they actually have. Doing this allows them to stay well within a fixed budget and prevents them from spending more than what they can afford. Their debt-burdened counterparts, on the other hand, often spend more than what they can afford, thus perpetuating a vicious debt-cycle.
Do you need to get out of debt? Then start thinking the way debt-free people do: be determined, make a plan, think of your future, say no to consumerism and live below your means. With time and effort, you too can know how good it feels to be debt-free.
Remember, it’s all in the mind. Mostly.