7 Ideas for Living the Rest of Your Life Debt-Free
21st March 2019
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Having debt is like going swimming with a gigantic stone around your neck.
You might be the best swimmer in the world, but you’re not going to go far. It is possible to live a life that is debt-free. Get rid of that dead weight and start living a life that is free and easy. Here’s how.
Live a life that’s free of debt:
1. Make extra dough.
Some people recommend to simply spend less money to get out of debt. That’s a good solution. It’s better to go through life in “make a dollar” mode rather than “save 5 cents” mode. You’ll be surprised how many problems will be solved by making just a little more each month. Don’t go through life working just enough. Make it your priority to earn your maximum potential, and you’ll see so many more rewards come your way.
Making more cash will get you out debt, but it’s not the only way. There are plenty of people making a million dollars plus a year and still living with debt.
2. Save some dough.
Get a handle on your expenses by putting some of your money aside. The biggest emergencies usually result in crippling debt simply because there were no savings to cover the costs. Get your nest-egg saved up, and you’ll avoid debt-makers.
3. Wait for it.
Instant gratification is the biggest reason people go into debt. They need that house now. They want that car now. They booked that holiday now. Waiting until you save up enough cash reduces the instant gratification, but it’s eternally more satisfying. Impulse purchases are no different. Things just feel more rewarding if you’ve saved up the money to buy it.
4. Don’t waste your dough.
The fewer things you have in your life, the better your life will be. Don’t make your life dependent on having the greatest things. Ultimately, your satisfaction doesn’t come from stuff. You’ll realise that once you have less of it.
5. Sell some stuff.
Once you do, you’ll see just how little you actually needed anything like that in the first place.
6. Allow some losses.
There’s a saying that if you want something you don’t have, you’ll have to do something you haven’t done. That is to say, if you want to get out of debt, you’ll have to make a few sacrifices to do so.
7. Allocate your dough.
As you look at your wants list, you might find that you *really* want some of those things. Prioritise your wants and make a savings plan for it. You’ll appreciate it when it gets to the point where you can make a purchase. This is all about deciding your needs and wants. Prioritise your needs. Put your wants aside until your debt is managed and gone. You’ll find that “wants” list decreases with time.
Don't forget - you can complete our budget worksheet and keep a copy of it in your LifeLot account, to help keep you on track to becoming debt-free.
8. Pretend you make less dough.
Debt usually comes because people spend over 100% of what they make. Pretend you can only live within 90% of what you make, and your debt will decrease. What number can you reach? 80%? 50%? Living on less means, you’re able to do more.
Yay! Looks like I managed to squeeze out one more tip.
"Pay off your debt first. Freedom from debt is worth more than any amount you can earn."
- Mark Cuban
Anyways, what would you do if your money was entirely your own to decide? No payments, no mortgages, no loans to repay. What could you do? What would you do? That’s what it’s like to remove that dead weight of debt and start living your life free from the burden of it. Making a step today means a greater tomorrow living debt-free.
Have a great rest of the week. Feel free to share this article, you may help someone.
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