6 Habits of Debt-Free People

You may struggle with debt and can't imagine a day when you're debt-free. However, you can make it a reality if you follow these 6 habits of debt-free people and figure out how their habits may be different than yours!

How do they do it? How do people go through life debt-free? For many of us, it may seem impossible. However, people do it all the time. What do they do that might be different from what you’re doing? Let’s take a closer look at the habits of debt-free people.

Having More Than One Emergency Account

We all know that an emergency account is important. However, people that are debt-free know that it’s important to have accounts for different things. They may have an emergency account for health expenses, one for household repairs, and another for other little things that may pop up, such as car repairs. If possible, open savings accounts to cover the unexpected.

Sticking to a Budget

Those that are debt-free understand the need for a great budget. They spend a certain amount on groceries, on gas, and other variable expenses. They may even use the envelope system to ensure that they don’t overspend. In their budget, they also probably have a set amount that goes into savings each month and a set amount that they pay themselves to spend on whatever they want.

Paying Off Credit Card Balances Each Month

Debt-free people don’t necessarily avoid credit cards. Some may use credit cards to make paying bills easier or to earn money from cash back offers. With that said, they pay off the balance each and every month. They never charge more than they can afford to pay off when the bill comes. In fact, they may never charge an item that they don’t have the cash to pay for at that moment.

Saving Up Money

Instead of being lured in by items that they simple must have right now, people who are debt-free usually save up for the items they want. For example, if they want a new TV, they may decide how much they want to spend and then put back a certain amount each pay period until they have enough money to buy it.

Being a Smart Shopper

Debt-free people are also smart shoppers. They use coupons, look for sales, shop thrift stores and yard sales, and do whatever they can to save money. This helps ensure that they never have to reach for a credit card to cover everyday expenses.

Living Below Their Means

Last, but not least, debt-free people live below their means. This means that they make sure they’re spending less than they bring in each month. Those that are living in constant debt are usually living above their means and using credit cards to cover their expenses.

You can pick up these habits and start using them today. Soon, you’ll be debt-free and able to let go of all that stress that comes with debt.


  1. Hi! Thanks for sharing. I am all about being debt free. I just paid off my student loan in December and I still feel like I’m floating on cloud 9 when I think about it! lol Now all that is left is Hubby’s student loan and a vehicle loan. And, I plan to pay off his student loan with our income tax return.

    It is so nice to hear from other people who get it. Our culture is so product and consumer driven that its rare to find others who agree and actually live a lifestyle that is (or is heading toward) financial freedom.

    Thanks for the encouragement. Btw, I’m visiting from Thrifty Thursday.

    • Corrie C says:

      Congrats on paying off your student loan! I remember what a great feeling it was when I made my last student loan payment – so freeing!

  2. Barbara says:

    Working very hard on becoming debt free. Want to really start saving for retirement. Thanks for your encouraging words.

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