Being debt-free in today’s world sounds like a dream come true for a bunch of people living off on credit and loans.
However, there really are a couple of things that financially wise people do that make them (almost completely) debt-free.
- Must Read – How To Get Out Of Debt #10 Powerful Steps
Living as a debt-free person doesn’t mean that one can’t engage in any credit deal with the bank or that the person doesn’t use credit cards at all. This means that some people know how to use them to their advantage.
Let’s take a quick look at what are some of the most notable routines of financially independent people are.
#1) Debt-Free People Are Informed
Letting others put their hands into your pocket is never a good idea, even if we are talking closest family here.
Most of the people succumb to consumerism and are living in constant fear that eventually they will run out of money. Keeping that in mind, these people often bite into clever marketing tricks of bankers and resort to getting a loan or credit from the bank in order to override current financial distress.
Financially smart individuals don’t let others run their budgets. They are well informed and they know if it is the right time to invest in some financial instrument or whether it’s the right time to take a loan from the bank.
They know the answers to some ordinary questions like:
- What’s current interest rate on market?
- What was the interest rate a year ago?
They understand the market and know how to take advantage of its ups and downs. You can’t fool them with disguised banking tricks and marketing messages.
#2) Debt-Free People Know How To Negotiate
Good negotiating skills can really prove to be a lifesaver in the financial world today.
With fierce competition on the market for nearly every product and service, there is no need for anyone to overpay for something when they can negotiate a much lower price elsewhere.
Debt-free people know that they have an ace up their sleeve – in other words they have money.
That gives them enough confidence to negotiate best price for what they need and to save much more than people who are resorting to the first option presented to them.
#3) Debt-Free People Are Much More Organized
Being organized and well-planned are two characteristics that are very highly correlated to being financially independent person.
People that owe a lot of money to the banks are always in a hurry. Being in a hurry won’t get you far and it’s an impeccable indicator of not being organized at all.
Debt-free people have a lot of lists; they know what they need and what they don’t. They don’t resort to impulse buying and are not jumping to opportunities to buy something they don’t actually need.
On the other hand, if they have some debt outstanding, they have most probably planned a timetable of paying them up upfront. They are never late with paying annuity and there are no unforeseen circumstances that will make them prolong their payment further.