Debt Free Living Tips

debt free

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If you tell yourself that achieving a debt free lifestyle is a fantasy and simply unattainable, then you will never achieve it. The first step towards debt free living is to change your self-talk. The second step is to change your spending habits; those 2 steps work hand-in-hand.

Step #1 – Debt Free Self Talk

Psychology experts often remind us that we are what we tell ourselves. With that in mind, if you constantly tell yourself that you will never attain financial freedom because of your debt, then you are continually defeating your own debt free goal and will never reach it. Reverse that negative self talk. Approach your debt with a more positive attitude. Tell yourself that you are determined to find ways to stop accumulating debt and start paying down more of your current debt. Seek financial counsel, read financial magazines, websites and blogs to learn how others have achieved financial freedom. If they can do it, you can too.

If you have been convincing yourself for years that your debt situation is hopeless then it will take sometime to change that self talk. Take it slowly, take baby steps, work on one issue at a time. Your best bet may be to start with your spending habits since that is usually the biggest reason for debt accumulation.

Step # 2 – Debt Free Spending

Debt free living starts with mastering your cash flow. You must live below your means, in other words, spend less than you earn. Debt elimination through spending changes may be difficult but not impossible.

Unfortunately though with the bad economy we’ve had over the past several years, many people are relying heavily upon their credit cards. That is a terrible financial habit to develop because it’s extremely difficult to break free from. The best way to reverse a dependency upon credit cards is to only buy what you can afford to pay at time of purchase. In other words in cash or if you use a credit card, pay it off within 30 days, before interest starts accruing. Credit card living give a false sense of financial stability and security…until you get the credit card bill.

Financial freedom is achievable if you focus on the right goals. Focus on your spending and self talk and you too can live debt free.