Day 312 (Three-Hundred & Twelve) of 365 days

The ability for you to live your life debt-free will open countless doors of freedom and allow you to lead a life that is much more stress-free. Leading a debt-free life is a conscious choice that you must desire to live by. To live a debt-free life you must devise a financial plan to live from; believing in your purpose and goal is key. Borrowing money for items that go down in value will not help you stay off the debt train. Paying every bill in full will also ensure that your finances do not become subject to borrowing money to make ends meet. Living life by a few simple tenants will safeguard your financial stability and lifelong happiness.

Creating a financial plan to live by is a large part of successfully leading a debt-free lifestyle. Life is certainly full of surprises, and eliminating the need to service your debts will alleviate many headaches for you down the road. Establishing a fair budget is your first step to building a financial plan. Spending more money than you make will leave you owing money to someone. Following through with a commitment to live within your means will solidify your financial plan. Generally speaking, you will fall into the debt trap when you want something or need something you can not afford.

Planning for emergencies and desires will help you avoid them altogether. Allocating your income to expenses will allow you to see when and where your money is going and how to save for the items you desire most. A firm commitment to your financial plans and goals will help you immensely. You will need to learn to curb your inner desires for the newest and best; This will prove to be challenging as companies entice you to become indebted to them with fabulous incentives to open accounts.

Some people think debt is the norm rather than the exception. To each his own. Just know that this type of mindset can become dangerous, especially if you develop the habit of financing anything and everything. Credit cards and other loans can put what you want within financial reach, but a life without debt can be rewarding.

I’ve learned something from my own experience with debt: It is easier to accumulate new debt when I already have debt. Whenever I have a zero balance on my credit card, I’m more cautious and conscious of how I spend my money and use the card. I’ll second-guess or rethink the smallest purchases. It doesn’t matter if it’s only $2 or $5, I’ll wait until I have the cash to avoid using the card. But the moment I give in and use the card, I stop second-guessing myself and I continue using the card.

I’ve had debt discussions with others and found that some people feel the same. Maybe it’s just our experiences, or maybe there’s a connection between existing debt and new debt. Either way, getting rid of debt can make you more aware of your spending habits. Debt elimination can be a long process. Reflecting on the effort it took to become debt-free (and the benefits) is motivation to remain debt-free.