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10 Habits of Debt Free People That'll Change Your Life

Written by Grace & Silas
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Credit to image used in pin goes to  OTA Photos, Tax Credits, and American Advisors Group. – Changes were made to the original image.

Have you ever wonder what the habits of people who are living a debt free life are? Think about the people who have stopped living paycheck to paycheck. And those who have paid off their six digit debts, student loans, credit card interest, and monthly payments. Though it’s not easy to become debt free, they make sure to get out of the debt trap and stay there.

That being said, I’ve gathered some effective key habits of debt-free people to give you inspiration and help you get started on your journey towards a more financially secure future. These are traits that are worth implementing in your life that will benefit you with financial freedom. So check them out, bookmark this post, and let me know what your favorite tip is in the comments down below.

Live On Less Than You Make

People who are living within their means have a debt free life. They don’t spend more than they make, giving them more savings than expenses. The beauty of being content and satisfied with what you already have can keep you from overspending which causes debt. Having the newest car or home doesn’t matter to debt-free people. What matters to them is that they have a safe future and they’re increasing their emergency fund.

Have a Budget which Aligns with Your Life Goals

Just because you’re earning a good income doesn’t mean you need to over spend and not have a budget. This kind of thinking can get you in trouble and in debt.

Even if you’re earning 80k or 150k monthly, it’s always a great idea to have a specific budget to stick to for the whole month. Budget you’re groceries, utility bills, monthly subscriptions, and other categories. Once done, allocate money for your savings and emergency fund. Having money left over doesn’t mean that you need to spend all your money at once, It’s always a great idea to stay within your budgeted lifestyle and don’t try to keep up with Joneses.

Always Use Cash

One of the easiest and most basic habits of debt-free people is that they prefer to use cash instead of credit cards. This may sound hard to believe, but many are living this way  and it’s making them free from monthly interest rates and debt. They always think that if they do not have the money, they won’t spend. They don’t buy now and worry about how to pay it off later. You can do this too and drastically change your spending habits using a cash system.

Be Responsible for Your Actions

Being responsible for your own actions can result in a debt-free life. You’ve worked hard to get that income so it only makes sense to spend it wisely. By knowing your priorities, sticking to your budget, and giving a place for every single dollar, it can help you make sure you’re never in financial trouble.

Learn When to Say No

This may sound easy to do, but many still fail to apply this to their own lives. When you’re on a limited budget and friends ask you to eat out with them, chances are you’ll say yes.

But by learning when and how to say no for unexpected and unneeded expenses, you can get yourself out of debt. Sure, it might be fun to go out to dinner at a fancy restaurants with your friends on a weekend night, but if it’s not in the budget, then just say no. They’ll will understand.

Always Save

Another tip that’s very common to debt-free people is savings. The moment they received their income, they keep a percentage of it and save. What ever’s left will be budgeted to cover up all the needed expenses. Whatever they do, they always try to look for ways to save. So for instance, they use coupons and rebates whenever they get groceries. They cut out monthly subscriptions for things that they won’t need. They look for alternative options for entertainment and even free activities. They are always keeping an eye out for great deals and savings.

Pay Attention to Detail

Whenever they receive their bills, debt-free people take time to pay attention and check if it’s accurate and know the bill’s due date. By implementing this, they never miss paying on time and avoid penalty fees for late payments.

Also with there different receipts, they make sure they got all the listed items and keep track of their spendings. This allows them to see if there are any unwanted charges that they can change. Every single dollar is important to them.

Surround Yourselves with Like-Minded People

As the motivational speaker, Jim Rohn, said “You are the average of the five people you spend the most time with.” Your relationship with others greatly influenced you and your financial habit as well. Take a look at your network. Do they make you feel comfortable when you’re with them? Do they keep you inspired to spend less and save more? Do they motivate you to reach your goals? If not, then maybe it’s time to surround yourselves with like-minded people who are aiming for a debt-free life.

Be Patient

Debt-free people have patience; it’s not always perfect but they’ve learned to grow in self-control. They demonstrate this in the practice of delayed material gratification. For example, if they need a new laptop, they start saving now and build up the cash. They never use credits cards and get in debt once again. They are not trying to keep up or impress anyone else by having the newest trends. Unlike an impulse buyer, they are willing to have patience and save before making a purchase. If you don’t have the money, don’t get it.

Plan for Long-Term Goals

One of the biggest secrets of debt-free people are their long-term goals. The way they live today is because of their future plans. They know that what actions they do today can affect their future.

So why not challenge yourself and do the same thing? Take time to write out your plan for the next five or ten years and think of how you’ll achieve your goals.

Have an Emergency Fund

I think there’s no better feeling than having a secured emergency fund. I mean, whether you have sudden unemployment or a medical emergency, you can have a backup plan that can keep you from going into debt once again. So throw any leftover money you have into building it; you never know when an emergency will happen.


I hope I was able to give you some inspiration and motivation for a debt-free life by implementing these tips and tricks. The fact that they are all from the success stories of different debt-free people, shows you that being debt-free yourself really is possible! So give them a try, apply them to your life, and let me know how things go!

So what are your favorite tips from this list? Let me know in the comments down below. I’d love to hear about them.

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Meet Silas & Grace

Silas and Grace always had a passion for travel. So in 2016, they started Chasing Foxes to build a independent income source. Then, 4 month after launch, they were making enough money from their blog to travel full-time. And in the past two years, they’ve been able to help others out in their own blogging journey to go after their passions as well. Read more.

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