If you are like most people, you don’t like debt. There is no way to sugar coat it – owing someone money just isn’t the type of thing that brings peace or happiness into ones life. Sure, most people have debt of some kind, but I haven’t met anyone with debt that enjoys watching the compounding interest, paying the monthly payments, nor owing someone something. No matter how you look at it, debt just stinks.
And for those of us who use the Bible as a compass for our lives, this verse in Proverbs 22:7 sums up the way that debt makes you feel, “The rich rule over the poor, and the borrower is slave to the lender.” My friends, I refuse to ever be slave again to any lender. It is one of the worst feelings I’ve ever felt – it left me feeling heavy and hopeless – and that is no way to live.
I am not saying you shouldn’t finance a home or buy a dependable car. I’m NOT telling you, that if you have debt, you are a horrible person. No, not at all. I am, however, addressing the stress that debt brings into the lives of those who carry the burden.
When my husband and I first got married we were literally up to our eyeballs in debt. We had just graduated from Washington State University and had both financed our entire undergraduate education. At the same time, we were buying our first home which also meant we were financing our down payment (crazy, I know), a new washer, a new refrigerator, and a plethora of other expenses.
Not to mention we were first-time parents with a 2-week old baby girl in tow and a lot of hospital bills to pay. We were clearly buried in the debt-trap and felt as if there was no way out. But we were wrong. There were many things we learned as we sought to fight back against our debt and walk in the freedom of being debt free.
There are many, many options for those who are looking to become debt-free. I encourage you to meet with a financial counselor to help you identify which is right for you. That’s what we did. Our financial counselor helped us create a plan that gave us hope as we could actually see an end to it all. And that hope helped carry us through the next 5 years of implementing and sticking to our plan.
I will say upfront that it wasn’t always easy to make the right choices when faced with a temptation to spend money. But as hard as it got, my husband and I held one another accountable and made sure to keep one another on track. And it worked.
For married folks who may have a hard time discussing and agreeing on finances, my husband and I came up with 10 things every couple should discuss about finances as a great starting point. This has helped us and countless other married couples tackle the tough topic of finances successfully.
I highly recommend having an accountability partner throughout your quest to become debt-free. It could be the difference between success and failure. And of course it never hurts to have someone cheering you on!
After we paid off all of our debt in 2005, we vowed to never go back to that place, ever again. No matter what. And in making sure that we remain debt free, there are some things that we just simply don’t do anymore. Not only do they not make any sense, but we just simply know better now.
Today I am sharing the things I’ve learned; the 5 things people who are debt-free don’t do.
5 Things People Who Are Debt-Free Don’t Do
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Don’t waste money
I’ve found that once we became debt-free, we were even more frugal than before. And being raised as a 4th generation frugal mom, I can say I was already extremely tight with a penny. There are a lot of things that we’ve found to help us save more money without even having to spend the time to do so.
For instance, there are so many money saving apps that you can use on your smart phone or tablet that will help you save money. We always use our online coupon database that shows us the most up-to-date coupons. We just print the ones we need when we need them; so easy and takes only a minute or two to get exactly what we need!
What ever areas that you are likely to “waste” money in, make it a point to set measurable, accountable goals to closely monitor your spending. If you are able to keep a tight handle on your “weak” areas when it comes to wasting your cash, you are much more likely to kick that habit.
Be sure to create a budget that works within the income that you have coming in each month. On my website I have a post on the most popular money saving printables that you can use to create your budget. Once you have your budget laid out it will be much easier to follow your finances and remain on track to your goal timeline of getting out of debt fast.
And if you do mess up, forgive yourself, and move on. As long as you stay committed to growing and changing in this area and don’t give up – you will eventually succeed. I promise.
Don’t waste time
This is a big one. I’ve noticed a vast difference between the way people who think from a debt-free perspective approach time management from those who do not.
Most people who are financially free, tend to see the value in time because they’ve spent a lot of their hard earned time and money focused on becoming debt-free. I can honestly tell you as one who had a mountain of debt at one time, once we paid it all off, I saw every minute of every day in a completely new way.
I found a lot more value in a day when I had the liberty to spend it the way I wanted to – rather than the way that my debt dictated that I had to.
And this, my friends, is a whole different level of victory and peace that I had never even fathomed. One way that I continue to stay in this mindset is by keeping close tabs on every area of my life through lots of planning and honest self-evaluation every now and then to make sure I am still moving in the right direction.
I encourage you to take an audit of how you are spending your time each day. Use any tracker that works for you and pay close attention to areas that are leading you to be wasteful with your money or that can lead to potentially tempt you to spend unnecessarily. This will help you reach your goal of being debt-free even faster.
Don’t go into debt
This one should be self-explanatory, but unfortunately it is not. I have met a family or two that started off life with no debt and then decided to be careless and go into debt. I’ve seen families break apart as they crumbled under the burden of monthly credit card payments, mortgage payments, and car payments.
I’ve watched family members have their utilities shut off because they fell behind on payments due to not making enough money to cover all their expenses as a result of racking up debt. And the truth is, it could have all been prevented if a spending plan had been set in place. But unfortunately when we don’t have a solid plan for our finances, life will come in and take over, every time.
There are some really simple ways to ensure that you don’t go into debt. But this one is the probably the most obvious for people as well as the hardest for most people to follow: If you don’t have the money to buy it (and it’s not an absolute necessity like food or shelter), then just walk away. Debt free living is just so worth it, I’d highly recommend you try you absolute hardest to follow this tip as much as possible!
Yes, walk away.
Everything in life that money can buy is replaceable. And that good deal you were tempted to spend on, will likely come around again. And for some reason it doesn’t, you will probably stumble upon something even better.
Bottom line – don’t allow yourself to be tricked into spending money to get the best deal. It’s just a slick marketing trick to make you to think you are getting a deal that you are actually spending money you don’t have to.
Be strong enough to deny yourself the pleasure of what you want in the short term to give yourself the ability to buy things outright in the long term. It is so worth it. Once you become debt-free, do yourself a favor and continue to make wise choices to remain debt-free.
Don’t neglect building your savings
Let me say this first: You do not have to be debt-free to build up a savings account. We had a very healthy savings account even when we had debt. It is tempting to believe that you can’t have any savings when you are focusing on paying off debt. But this simply isn’t true.
Even if your finances are crazy tight with no budget at all, you can still put away something small. Maybe start off by putting away $5 or $10 a paycheck. Then as you continue to pay off your debt you can bump it up to $20 or $30. And then go up from there. The point really isn’t how much money you are saving, rather that you are saving.
So I challenge you to set a small savings goal each month and as you continue to free up more and more of your money you can bump up what you are putting away. It is a wonderful feeling to set and accomplish financial goals!
A little side bonus of becoming debt-free is that you will naturally be able to make your savings account a lot healthier. And believe me, myself and all of the other people we know who are debt-free are very committed to saving money. It becomes a way of life. Be sure that once you become debt-free, you don’t give yourself a license to go crazy and not save money or you’ll find yourself back in the debt trap!
Don’t waste the opportunity to make money
As anyone who is either already debt-free or striving to become debt-free already knows – becoming debt-free is not something that just happens by chance. You have to learn how to get rid of debt, make a plan and work that plan until your goal is accomplished. Don’t stop.
In our 5-year quest to become debt free (from 2000-2005) we found ourselves learning about many different types of ways to make money. From investing to selling on eBay, we have tried many ways to continually gain new streams of revenue.
And over the years, one thing is for certain – we definitely enjoy making extra money so we can give away more money to those who need it. I know not everyone shares our belief system about giving, but it really is an important part of making more money.
As a Christian, we can agree that there is truth in this statement: You reap what you sow. Sow generously (with your time, finances, etc.) and watch the blessing of God unfold in your life! And the beautiful thing about giving generously is that it actually becomes more of a blessing to give than receive – and it’s a wonderful habit to demonstrate to your children as well.
While I know that not everyone is the same, I can testify that as we have continued to stand strong and not do the 5 things listed above – it has helped us to remain debt-free. I hope that some of these points help you along your journey to remain debt-free!
What are your best tips and solutions for continuing to live the debt-free lifestyle? Or if you aren’t debt-free just yet, what are your best tips for those on the journey to becoming debt-free?
Leesha says
Great tips! We’re still in the process of becoming debt-free, but we apply many of these same concepts already!
Sarah Titus says
That’s great!
Carile says
That’s wonderful, Leesha! It can only help you get there much sooner! Excited for you!! xoxo, Carlie K.
Sara says
Our Canadian/welsh tips:
We are now getting all our dvd’s from the library and not from wal mart anymore. This saves lots of $$
We also are sharing 1 car instead of buying a second with insurance money after a crash
We get almost all our appliances from the recycling ‘free store’ at the eco centre plus free paint from the paint recycling section.So we decorate for free (much of the paint is a healthier non voc)
For food we are growing veggies in pots and have 2 chickens.Eggs are laid every second day. We do lake fishing for entertainment and to fill the freezer.
When I got back from Mexico we would cook up big batches of beans to use as a filling condiment for most meals.
We also make quiches which are very very cheap if you look up how to make the pastry.
Also we dilute 1 litre of fruit juice/lemonade to make 4 litres.
We also recycle our bottles and cans regularly for money.
Enjoying your blog Sarah Titus:-) xx
Sarah Titus says
Some of these are universal ideas that anyone could do! Fantastic ideas. Thank you for sharing Sara. 🙂
Jessie says
This is a great post! Thank you 🙂
For my husband and I, the best thing we have done to stay out of debt is to create and follow a budget. I’ve spent the last year and a half tweaking it and finding new ways to save. Its been fun, but challenging at the same time.
Sarah Titus says
That’s so awesome Jessie! What a huge accomplishment! 🙂
Debea says
I want to say way to go on mentioning God’s name in your post. More people need to do that and to give credit where credit is due. Thanks.
Sarah Titus says
I second that. 🙂
Fanika Janko says
Great tips!
I would love any tips you may have on a monthly budget. I am trying to start one, because I am sick of living paycheck to paycheck. My daughter deserves better 🙂
Please help if you can.
Carrie says
Thank you for giving God credit where credit is due! 🙂 Thank you so very much! Great advice also!
Sarah Titus says
Absolutely! <3
Anonymous says
Love your blog and post!
Thanks for all the great tips!!
Mel says
Such a great post! I am trying to pay off my student loans. I need all the help/tips I can get!
Heather says
#6 Tidy up. Never buy something you already have, just because you can’t find it.
#7 Money spent to maintain or update your home is rarely wasted. Home projects can be great for the soul. But only buy materials when you’re ready to start. This includes mark-downs. They’re not a bargain if you never end up using them.
#8 Don’t purchase clothes, furniture, decor that you don’t love. You’ll regret it and won’t be able to justify buying what you love when you do find it.
#9 The Joneses are probably in debt. Who cares what they drive or where they live.
Sarah Titus says
Haha. Love #9. 🙂
Anonymous says
I want to thank you for mentioning helping the unfortunate and God. That meant the world to me that someone else values that.
Nicole says
Hey Sarah! My husband and I have just started our debt-free journey, we hope to pay off our house in the next 5 years! These are really wonderful tips, thanks for sharing!
Sarah Titus says
Absolutely Nicole! That is a FANTASTIC goal! All the best toward that endeavor. <3
Emme says
You made very valid points. I became in debt myself with medical bills, charging groceries and prescriptions when I left my job to help my ailing parents. I never regretted taking that time off to help my parents ever. After working for 30 years, it was nice to be able to help them and spend more time with my parents. But I still needed to make mortgage payments, pay utilities, car insurance, pay for prescriptions, etc. When my savings got depleted, I started to charge. I finally found a debt consolidation group that negotiated my credit card interest to a lower percentage but the main thing I had to do was be frugal. If I wanted some new jeans I went to a 2nd hand store, I bought items at the dollar store that were cheaper than food stores, I stopped going to the hair salon every 2 months and went only 3 times a year. To save on gas, I did all my errands in one trip. These are just a few but I also saved all my loose change in a year and that extra $300 went to an emergency fund. I sold on Ebay and used that money to help with medical bills. Little by little making sacrifices, I can now say I am almost debt free. I realized there were so many things I did not need once I started to cut back. If I wanted to treat myself to something, I would wait a day and usually after I slept on it, the next day I realized I didn’t want it as much. Its not easy at first but once you get in the habit of making frugal choices you’ll feel better about the money you saved.
Sarah Titus says
Sounds like you’ve figured out the secrets to being debt free Emme! 😉
Sue says
I was left bankrupt and in a shelter with two teenage girls to find out i was expecting number three…it had taken me five years and all of this year’s tax return but I have done it!!!! By the grace of God and a ton of hard work I am debt free in daily life, rebuilding my credit after bankruptcy, have some savings, and am looking at being able to buy a home for me and the kids next year. Every word you mentioned is beyond true!!!! I was there and I never want to go back. I am also known as the overtime queen at work. ROFL!!! It can be done.
Sarah Titus says
Wow, thank you for your inspiring story! That is SOOOO awesome Sue. So proud of you and your hard work. Great job!!!!! <3
Lindsey says
We recently have tacked on a little bit of debt, however before this year, we have NEVER been in debt. After putting 90% down on our car, we now have car payments (our old car became unfixable), and we just purchased a washer and dryer for our new place. Combined, our debt ends up being only around $2,000 which we can pay off in no time :).
Sarah Titus says
Definitely keep at it, so that you can get completely out of debt. You can do it! 🙂
Lindsey says
Thank you for your words of encouragement!
Lisa says
You make some great points, especially the one about walking away from a good deal. That’s always been a hard one for me but I’ve gotten so much better about it. We’re also looking into all kinds of other ways to make money outside of my hubby’s regular full time job. It’s a slow process but we are determined to pay off our debt sooner than later!
KatesMarie says
I came across this article and thank you so much, I was in a horrible accident 3 1/2 years ago that left me disabled and unable to work. After going from a 6 figure salary to 1200 a month (after all my medical is deducted) it’s an adjustment! I also went through a trial with our former insurance company and the person who caused the accident (of course they refused to pay my disability insurance I had through them and the other persons insurance company refused to pay even though they were at fault). Needless to say I lost everything and a jury ruled that even though they were at fault, the insurance companies didn’t have to pay hardly anything (a measly $500), I’m left at filing bankruptcy. I know not everyone’s first choice but on a single income, there isn’t much you can do. I’m learning to budget, your tips are excellent, and thank you for mentioning God too. When I wasn’t recieving any income, there were so many good Christians and others who helped me out, and this last 3 1/2 years has been the hardest of my life. Without my faith I never would have made it or been able to go on. My Dr’s tell me it’s a miracle I am still alive. So even though I don’t have money to give, I do help out by volunteering on my good days, and I’m starting to sell my art and photography as well for extra income, as well as items I don’t use, clothes, shoes I can no longer wear online. And thank you for those coupon recommendations and apps! I have been using some but found others with your recommendation! God Bless and Thank you!! ~ KatesMarie
Sarah Titus says
Sounds like you’ve had a pretty rough time KatesMarie. Will be in prayer for you to get where you need to go. I’d also encourage checking out my credit score challenge series here. There are a lot of ways that you can get around bankruptcy. Not sure if you’ve tried the options or not, but sometimes you can simply call your creditors and say, “Hey, look, I’m about to file bankruptcy, but I’d really prefer not to, help me”…they WILL. Then they get something, whereas bankruptcy, they get nothing…worth a shot. But there’s LOTS of info jam-packed in that series.
KatesMarie says
Yes, I have tried everything. I notified them right after my accident (when I was able) and tried to work out anything. But they were unwilling to work with me. One of the creditors just served me with papers and falsified information. Thank goodness I keep all my documents, as I submitted proof of my disability (saying they would work with me upon proof) the judge even wrote letters. But they claimed no such proof was submitted or the evidence that was, was fraudulent. It doesn’t take much to contact a judge to verify that those documents were valid, or that I was in fact declared disabled. It’s been a mess trying to work with them, and being sick. But there is light and the end and I will be ok. Thank you again! I know I came across your blog for a reason!! I’m so glad I did!
Sarah Titus says
Sounds like a mess. Will continue to pray! <3
Jessica says
Great article! I completely agree with not wasting time or money. It’s funny how when you can afford things, you don’t really even care to buy them anyway. You don’t have that voice saying “I wish I had that”. Because you could have it. You’re just choosing not to. Huge shift in mind set. Thanks!
Mary Picarella says
I am in financial trouble since I quit my part-time job. I am CNA (nursing assistant) but my mother needs a caregiver so I am moving my mother and I into a handicap apartment. I am in over my head in debt. I thank your Five ways that debt free people stay debt free. It is going to be a life changing experience for me. Hospital bills for me when I stay home to take care of my sick husband and a clothing credit card. I am a Christian and truly believe that God is going to help if I help myself.
Sincerely Jacqueline says
Great advice. I love the whole “walk away” perspective. I definitely agree it fixes a lot of the debt issue. I am avidly working on shrinking my debt! I was debt free once, and I remember feeling so free. Thanks for the putting the extra pep in my step to ramp up my goals and efforts!
Desi says
Hi. I am very happy to get to your blog. I live in Bulgaria and am a mother of two girls. Four years ago we bought an apartment with my husband and since then we cannot get rid of debt. I am very stressed and really will follow your advice above to try to fix the issue.
Sarah Titus says
I’m sorry to hear that Desi…several years ago, I was homeless, so I can definitely relate to feeling very stressed. Take a look around the site when you get a chance. There’s so much great info. of what personally helped me go from homeless to where I am now. 🙂 Praying for you! <3
Eunice Mwikali says
Sarah thanks for the powerful tips on living a debt free life. DEBTS never bring GLORY to ALMIGHTY GOD. For sure will use your tips to get rid of the debts I have because they make me feel as I am carrying a yoke. GOD BLESS YOU FOR GLORIFYING HIS NAME ON YOUR BLOG.
Sarah Titus says
Glad it is helping Eunice. Debt feels like a yoke for sure. Sorry you are in that situation. Praying for you right now. <3
Eunice Mwikali says
Thanks Sarah, I do appreciate.