Major Differences Between Those Who Are Debt-Free & Those Who Aren’t Debt-Free


There are people who easily stay out of debt. There are also people who struggle getting out of debt.

There are people who strongly feel hopeful, even when they’re still getting out of debt. There are also people who immediately feel hopeless, even when they’re just staying out of debt.

Now, let me ask you a question: why is that?

Here are some major differences between those who are debt-free and those who aren’t debt-free:

Their Habits

“Habits become characteristics.”

Those who easily stay out of debt are those who practice habits that will make them easily stay out of debt. This includes keeping track of expenses and prioritizing needs over wants. On another hand, those who struggle getting out of debt are those who practice habits that will make them struggle getting out of debt. This includes using their credit cards for things they can live without and borrowing money from others for things they can purchase later.

Always remember, every habit that we have determines our future – if we become debt-free or if we become in-debt. On a brighter note, it’s never too late for us – to change our habits and to change our future.

Their Mindset

“Mindset is everything.”

Those who strongly feel hopeful, even when they’re still getting out of debt, have a mindset that – if it’s cultivated – will get them out of debt. This includes knowing the differences between needs and wants. On another hand, those who immediately feel hopeless, even when they’re just staying out of debt, have a mindset that – if it’s continued – will not stay them out of debt. This includes categorizing themselves between being entirely poor and being broken poor.

Being poor and being broke are two different things, with the latter having the most chances of becoming debt-free within a short period of time. But with this kind of mindset, one would prefer being broke rather than being poor – and sometimes, forgetting that being debt-free is the ultimate goal.

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Managing Your Money Better


Learning how to manage your finances effectively can help you weather economic downturns or unexpected personal financial difficulties. While managing your personal finances is best started early in your life, it is never too late to take steps to build a financial cushion. One helpful strategy is to better manage your money so that you earn, save, or invest more than you spend.

Use credit cards wisely. A lot of people have trouble keeping track of their credit card expenses. Learning how to control credit card usage can save you from the headaches of paying exorbitant bills. Plan ahead by preparing a list of things you need when you go shopping. Train yourself to avoid impulse buying. Use low interest cards so you can avoid steep rates that could add up to your monthly bills.

Opt for cash. Some people find it harder to part with their money than swiping credit cards. Try to pay in cash or use debit cards so it would be easier for you to keep track of how much money you are spending at any given day.

Find good deals. Using coupons and deals can help you save more over time. Look for the best deals on items or services that are on your shopping list. Doing your research and being resourceful will lead you to coupons or promotional offers that translate to more savings for you.

Set money goals. Setting financial goals makes encourages you to pay more attention to your spending habits. Having a clearly defined financial goal helps you focus on the steps you need to take to achieve them.

Stay within budget. Make it a habit to prepare a monthly budget and stick to it no matter what. This can make it easier for you to save up for any important or major expense such as a new gadget or car.

Invest. Set aside some of your savings for investment. With your financial goals in mind, you can start investing on products that you understand. If you are unsure of how to proceed with your investment plans, you can consult with a financial coach or planner for proper guidance.

Practice mindful spending. Pay attention to your spending. Keep track of expenses no matter how small. There are free software management tools you can use to properly monitor your personal finances. Check credit card bills thoroughly and adjust your spending, if necessary. It also helps to review details about debts, savings, and investments you may have.

Frugal Life Hack: Keeping Your Eyes on Your Financial Goals


Every day is a good day to set financial goals, if you do not have them yet. But there is a huge gap between setting a goal and sticking to it to the end. The trick to succeeding at what you set out to achieve is to find that balance between ambitious and realistic. The last thing you want is to lose your motivation at some point because of unrealistic expectations.

1. Start with slow but steady. One of the simplest goal setting tips worth heeding is to work on your financial goals one step at a time. Avoid rushing through the process. Divide major goals into smaller into mini projects that you can work one at a time. Slow and steady may not seem much at the onset. But it is a realistic approach that can get you where you intend to be in time.

2. Develop a plan. Prepare a plan once you have set your sights on your money goals. Consider it as a guide to your every day decisions and behaviors that impact your finances. It should also serve as a foundation on how you organize and manage your time so you can follow-through with your goals.

3. Follow through. Your goals and plans are only as good as your ability to follow through. Make sure that you chip away on every challenge regardless of how motivated or less driven you feel at any given time.

4. Build habits that support your goals. The best goal setting strategies and excellent planning, however, can’t guarantee your success in accomplishing your objectives. Develop routines that allow you to work on your goals one small step at a time. Make it a habit to do something related to your goals every day no matter how small or mundane it may seem.

5. Take note, review, and evaluate. Take note of your progress and review your financial goals regularly.
Evaluate what is working and what needs to change so you can stay on track.

6. Make it work. Be clear about what money-related projects you need to accomplish every day. Make it a daily part of your routines. Commit to your end goal and prepare to deal with issues or problems that may make it harder for you to get the results you want.