For many families debt free living may seem as unrealistic as fairy tales like Cinderella or Sleeping Beauty. Who can imagine a life without credit card bills, car payments, and other types of debt? Many people have been in debt for so long that they believe that debt is just a part of living.
Imagine for a moment, however, what your life would be like without debt. How much money would you have left at the end of each month? What treats and luxuries would you be able to provide for your family? It is an appealing thought, isn’t it? Although working your way towards a debt free life isn’t easy, you will find that it is well worth the effort.
The first step in living a debt free life is, of course, paying off your debts. You have to make debt reduction (and ultimately elimination) a priority. Be willing to forego extras for awhile so that you can pay off your debts. Small sacrifices now will lead to big rewards once you’ve started your debt free life.
A vow to avoid any new debt is also in order when you decide to start a debt free life. This may sound easy, but temptation is everywhere. What will you do when you receive that Best Buy flyer in the mail advertising stylish new televisions at 0% financing? Will you ignore the furniture advertisement you received in your mailbox? Stay strong in your determination to avoid any new debt.
An emergency fund is a strong tool for anyone looking to life a debt free life. You may find it easy to avoid taking on debt for unnecessary purchases, but how will you handle unexpected expenses or emergencies? Having an emergency fund will help you handle those unexpected situations without turning to new debt.
Once you’ve paid off your old debts and saved up enough money to handle most emergencies, you’re ready to move to the next stage of debt free living: planning ahead for your purchases. You can take the money that you were spending on monthly debt payments and start earmarking it for new purchases. You can save up enough cash for that new television or even take your family on a big vacation. Life’s luxuries will seem even better when there is no debt attached to them.
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I think its oversimplified a little in the article, but it is doable.
I went from living a debt-ridden life to about as clost to debt-free as I can get at the moment.
Currently, we have zero debt besides a house payment.
The first step is to have the willingenss and motivation needed to make the right changes in your life.
Next, rather than changing specific little habits, or coming up with an A, B, C list, one needs to evaluate and adjust his mindsets and attitudes towards money.
In a nutshell,
1) Treat it as yours, and not something you just give away every two weeks,
2) Keep track of it, and fight like hell when someone (bill company) tries to take it from you unfairly.
#) Lost the victim mode–take control of your finances–it can be done!