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Home / Debt / 5 Effective Habits of “Debt-Freesters”


Debt FreestersAre you one of the millions who is broke before each paycheck? Are you sick of living on that merry-go-round? Living paycheck to paycheck, it may seem as if you can never hope to become debt free. You are probably right, so how do you get off the ride? Here are a few easy steps that will help you stop living paycheck to paycheck and get you on track to a debt free lifestyle.

They Track Expenditures

If you are living paycheck to paycheck, you have probably wondered where your money has gone at least once a week. You are asking yourself that because you spend freely and do not keep any kind of record as to where you drop your cash. Frugal people and debt free people share one common trait, they have a complete record of where their money goes each day. Everything from a pack of gum to their mortgage payment is tracked and accounted for.

They Have a Realistic Budget

Creating a budget is much easier than you may imagine. If you track your cash outlay, budgeting becomes even easier. A well formed budget will help you make all of your payments on time as well as lay the foundation for a growing savings account.

They Eliminate Waste

You will probably see a few obvious ways that you are wasting money after tracking your expenses for a month, but that is just the beginning. Start looking at your recurring monthly expenses for ways to save. Insurance premiums are an easy target. Shop around and consider raising your deductibles. Next, look at your memberships and subscriptions, then have a look at your cable bill, home phone, and data plan. You may find another couple of hundred dollars each month.

They Set Goals

Many of us want things that are above our current means. That does not have to mean that we can not have them eventually. Set a goal for yourself. If you want to go on a cruise, then find out how much that cruise currently costs. Once you have a figure in mind, determine a date…a year from now, maybe two. Make taking a cruise in two years your goal. Divide the current cost by 24 and commit that much to savings each month. Sure, there may be inflation to account for on the tail end, but you will have the bulk of the money you need when the time comes.

They Allow For Fun

Why do most people waste money? They are bored. The best budget will include an amount for entertainment on a regular basis. Build in an allotment for a date night every two weeks, a night out with the gang at least once a month, or whatever you find entertaining. The trick is to not be so frugal that you get mad or depressed about it, other wise you are going to give up.

Living paycheck to paycheck is one of the most depressing ways of life to endure. You are your own best friend when it comes to getting off that sad merry-go-round. Hopefully, you will find at least one helpful tip here.


About the author: Taylor


Taylor Brown is the founder of He has paid down 90% of his credit card debt through smart budgeting, frugal-living, and inspiration/support from other personal finance bloggers.


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