Habits of Debt-Free People

8 Copy-Worthy Habits of Debt-Free People

Ever wonder what debt-free people are really like? With six-figure student loan debt becoming the norm now-a-days, and car loans stretching over 72 months, it’s hard to become debt-free with our instant gratification culture.

If you want to be debt-free, here are eight copy-worthy habits of debt-free people. Use these habits now to stay on track during your journey to becoming debt-free.

1. Don’t care what others think

For those that are debt-free, image is nothing. It doesn’t matter what brand of clothes you wear, or kind of car you drive. Possessions and massive consumerism mean nothing and there is freedom in saying, “Who cares what the Joneses are doing!? That’s great for them, but that’s not for me!” 

2. Know what they want in life and plan for it

Debt-free people work hard to get out of debt and stay out of debt. That means planning ahead for big purchases like cars, vacations, or going back to school to avoid taking on future debt.

They’ll drive a 7-year old used car and start saving monthly over the next 3-years to outright buy their next car.

3. Wait and are patient

Those that are debt-free aren’t impulse buyers. They wait on purchases until they have the funds or until an item goes on sale. Like the saying from the Great Depression they, “Use it up, wear it out, make it do, or do without.”     

Talk about going green, those that are debt-free use what they already have for as long as they can. Genius, right?

4. Say no

They aren’t always people-pleasers that go with the flow. If some event, or expense “pops-up,” especially within their peer group (think trips, concerts, or even an invite to go out to eat at a fancy restaurant) and they aren’t financially prepared for it, they kindly decline and go without.  

5. Have fun without spending money

Debt-free people know how to enjoy time spent together with friends doing less than amazing things, and instead simply enjoy one another’s company. 

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6. Organized with birthdays, holidays, and celebrations

Those that are debt-free don’t wait until the last minute to purchase gifts. There’s always a birthday, graduation, wedding, or baby shower around the corner, and those that are debt-free plan ahead for these gifts.

We’re talking its September, and they’re already jotting down the list of gifts they plan on buying for Christmas.

7. Use cash for purchases

Almost every single financial guru will recommend, if you’re on a mission to get out of debt to use cash for day to day purchases. Why? Because it hurts to literally part with the money. When it is gone, it’s gone. Studies show on average people spend 12-18% less with cash purchases versus debit or credit cards.

Those that are debt-free still use cash to pace their spending even when their debt is loooong gone.

8. Keep a busy schedule

Debt-free living doesn’t mean that you’re sitting at home doing nothing. Those that are debt-free are often busy being involved with various professional organizations, church events, or volunteering for non-profits. In many cases those that are debt-free have a side hustle and devote time to a small business.

Essentially, sitting around shopping online, isn’t as much fun to people who are debt-free, as making an impact in this world and pursuing a true passion.

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If you’re ready to get out of debt, try these eight copy-worthy habits of debt-free people. You can become debt-free!

Carly Michelle Best Money Class Ever

Hi! I'm Carly

Welcome! Let’s be friends:). I’m a Finance grad, creator of Best Money Class Ever and money coach. Here you’ll learn how to say bye, bye, bye to debt, build savings, and stress less about money.