Career & Finance

10 Characteristics of Debt-Free People

10 Characteristics of Debt-Free Living


Getting free from debt takes dedication and unwavering commitment. It is a habit that you must learn to imbibe and put into practical use. While this task may seem daunting from the word go, some people have been through this phase before, and have successfully become debt-free. You can draw inspiration from these people by looking at the kind of life they are living financially and materially. Study and copy their characters and learn to live within them.

Here are 10 characters of debt-free people you can adapt to become debt-free yourself.

1. They Are Very Attentive

Debt-free people pay strict and consistent attention to their personal finance. They keep a close eye on their material and financial needs. They don’t waste money by not remembering overdraft fees or payment due dates.

You can start from this point to develop your attention. Check on your credit card statements each month. Weigh your needs and study your abilities. Then start thinking of a budget.

2. They Have A Budget

A budget is the only way you can remain consistent in being attentive. Having one doesn’t mean you must have a restrictive lifestyle or that you are broke. Rather, a budget is what debt-free people use to plan for their finances, control their spending, and achieve their goals.

3. They Operate An Emergency Fund

Debt-free people have reliable emergency funds that help them to take care of emergencies whenever they arise. Assuming your roof cave-in or you lose your job tomorrow; an emergency fund will help you scale through till you find solace gain, instead of borrowing money and becoming a debtor.

Start building an emergency fund by throwing in any extra cash, and start monitoring your spending. Here are 10 ways to start an emergency fund when money is tight.

4. They Go With People That Have A Similar Initiative

The people around you and your environment shape your personality, and debt-free people know this. The quickest way to achieve your goals is to spend your time with people of like-minded passion who have been through the same issues in the past.

If you plan to stay out of debt or save money, then you must avoid friends or relatives that want you to go out for expensive vacations or lunch every day. Stick with people that share the same mindset as you.



5. They Always Commit To Saving Money

One of the hallmarks of debt-free people is that they always remember they have a savings account. So, the moment they receive any money as income, they deposit a percentage of it into their savings account.

Do the same. Try to keep and save a percentage of your income, at least 10%. Use the remaining balance to augment your budgetary needs.

6. They Live Lesser Than They Make

Debt-free people understand that the best way they can secure their financial future is to live below their means.

If you can become aware of the income you make now and then, and you commit to living within your means, you will get out of debt sooner than later. You will also get to save more cash and get to your financial goals.

7. They Have Very Little Or No Time For Stuff

Debt-free people rarely put most of their attention on materialism. They understand that material things have no sentimental value, and they can never replace more meaningful engagement, relationships, family, and friends.

8. They live patiently

Patience is a great virtue of success, and debt-free people know it. If you must achieve anything in life, including your financial goals, you must be patient and focus mostly on your long-term goals. Debt-free people understand that whatever action and inaction they take today can affect their tomorrow.

Never try to be like the Joneses when you don’t have the means yet, or you have more crucial needs to meet. Doing otherwise will only drive you deeper into debt. Wait for your time and save up for whatever you wish to purchase. There is always time for everything.

9. They Do Thorough Research

People who are living debt-free understand that information is power and getting the current info put them a step ahead in their pursuit to achieve their goals. They usually do their research before embarking on buying anything. You can find the best deals on many products and services and save up more cash for your savings. Without research, you won’t be able to achieve such.

10. They Are Disciplined

Debt-free people knew that the greatest enemy to a debt-free life is oneself. They are continuously tempted by many opportunities to live large beyond their means, dining with friends or lunching with co-workers, and such other small expenses that can quickly mount up. They know the danger and have disciplined themselves to say no when they need to, no matter the allure of the moment.  If you must succeed in saving money or paying off your debt, you must be disciplined.


There is no better way to learn something than to cultivate the new and positive habits of people who have been through that same road. The best-laid plans to live a debt-free life start with you. So lay them out and start your journey to a debt-free life.