7 Key Traits Of People Who Are Debt-Free

People with no debt are a rarity in our easy credit, instant gratification, consumer-spending-driven world. But such people can be found at all income levels. These people aren’t special or superhuman. They simply have some attitudes and traits that enable them to get free of debt, and stay that way. 

It’s important to understand that debt-free people aren’t always born with these traits. Some were fortunate enough to be raised by financially responsible parents who imparted many of these attitudes. But most people come to the debt-free lifestyle after years of indebtedness and money-related stress. They develop these traits as they begin the process of re-shaping their financial lives. It’s not easy to change habits and attitudes, but they did it. 

And so can you.

Here are seven common traits of individuals who live financially free and clear:

1. Target-Driven 

I prefer “target” to “goal” because you can’t score unless you hit the target, and you need to achieve targets first, with the goal being the ultimate aim. These people understand that if you don’t know where you’re going, you’ll never get there. They set money targets, starting with getting out of debt, and organize their financial life around those objectives to reach a goal.

2. Smart 

Debt-free people don’t fall for marketing hype that tells them they “deserve” a new luxury car. They don’t believe debt is a powerful tool to help create the life you want. They know most debt is an ugly, addictive thing that can limit their options both today and tomorrow. The happiest people understand this and work hard to eliminate debt, including their mortgage, before they stop working. Imagine if instead of a “credit card” they had to be called a “debt card”……….would you have one then?

3. Disciplined 

They have prioritised getting/staying debt-free, and do what is necessary to achieve that target, day-in, day-out. Debt-free people follow their budget. They do without niceties until they can truly afford them. They understand that not eating out, or skipping the hot new movie (until it’s on DVD/download) is a temporary sacrifice. Remember your grandparents? Credit wasn’t available so easily so they had to “save to spend” whereas too many these days “spend and create debt”…………maybe time to learn from our elders? Do you really need the latest phone (or other gadget)? Can you still call people and text them on the one you have now?

4. Non-Materialistic 

Let’s face it. Too many people are borderline hoarders. We’ve all got at least one item in our clothes cupboard that’s never been worn or used. Debt-free people tend to have less interest in amassing “stuff.” They derive their happiness not from things, but from experiences and from knowing they are financially secure.

5. Patient

They are able to delay gratification. They know the joy of paying cash for something they really wanted and saved up to buy. They have a vision for retirement and other long-term goals and the ability to steadily work towards them. A small sacrifice today for a larger reward tomorrow………..!

6. Responsible 

Household needs always come first in allocating their resources. They do the hard work necessary every day to make sure true needs are met within budget, and they resist the temptation to take on debt for “wants” rather than “needs”. 

7. Secure 

Debt-free people exhibit some unusual financial behaviours — everything from not carrying a credit card, to skipping a holiday this year, to buying cars for cash rather than lease or credit. But the point is debt-free people don’t care what others think. They are secure in the knowledge they are doing the right thing for their and their family’s future.

Do you need help with finding the right financial balance in your life? Please contact me.


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email: greg@yourmoney-matters.com