There are people who practice debt-free living, and then there are those that only dream of being debt-free one day. People who do practice debt-free living were not born this way; it’s all something they learned along the way. Therefore, you, too, can become one of them if you take the time to study their habits and try to integrate some of them into your own life. Now, only one question remains to be answered – what are they?

7 Traits Typically Seen in People Who Practice Debt-Free Living

  1. Non-materialism

People who live debt-free are not hoarders and they, for the most part, do not derive their happiness from materialistic things. They are more likely to seek happiness from the simple things in life and from knowing they are financially independent, stable, and free.

  1. Smart Investing

People who practice debt-free living tend to plan their spending in advance.

This doesn’t necessarily mean they’re calculating the flow of every dollar in their bank account, it’s just that they realize the often-hyped values like owning a luxury home are overrated and certainly not worth falling into debt over.

7 Traits Typically Seen in People Who Practice Debt-Free Living

  1. Ability to Delay Instant Gratification

Financially stable individuals know that delaying instant gratification in order to reap much better rewards in the future is the way to go.

By letting go of things that don’t have meaningful long-term value, they are able to keep their options open for the future.

  1. Responsibility

Due to working hard every day and making sure that they have enough money to contribute to their savings account regularly, they rarely need fast cash or a loan. If an emergency expense comes up, they cover the expenses by making a withdrawal from their savings account if need be.

  1. Having a Plan

Financially stable people always set their own financial goals and do whatever it takes to reach them.

If they have some unsettled debt, they always take care of it prior to engaging into other activities that would drain their bank account.

  1. Never Living Beyond Their Means

People who practice debt-free living follow a tight financial budget each month. If sacrificing some personal comfort is what it takes to stick to their budget, and get through the month by spending less, then that’s what they’re prepared to do.

  1. Resistance to Impulse Purchases

Making impulse purchases is something a lot of people can’t resist doing; but not people who practice debt-free living. Often times, we are bombarded with clever marketing offers and discounts, leading us to purchase things that we don’t really need. Having the mental fortitude to recognize this and avoid it is often the difference between ending the month with extra money stashed away for tougher times or sinking more and more into debt.

Save money and live debt free


The above-mentioned traits are the key to a more stable and prosperous financial life, and each one of them can be learned. Although it’s hard to integrate all of them overnight, the fact of the matter is that once you do, you’ll unlikely find yourself in a situation where you’d need to take a loan as the only way to pay for an emergency.