Some people are drowning in a pool of debt while others swim in cash. And it’s not hard to spot what makes their difference. Debt-free people have developed characteristics that make it easy for them to manage their finances well. So, if you want to stop your debt from haunting you, develop similar traits.

Here’s a list of top characteristics debt-free people have.

1) They have a keen eye for details.

Image source: The Balance

Your hectic schedule is not an excuse to miss your dues. Overdue bills, bank statements, and credit card surcharges—debt-free people never forget to watch out for these records, which many often overlook.

How to do it? Pay close attention to small things in your life, particularly those involving money. Know your due dates. Keep track of your expenses and where your money is going. With these simple ways, a huge amount can be saved.

2) They are self-reliant.

Debt-free people take pride of their financial milestones and freedom, so they make an effort to maintain it by keeping a simple lifestyle. It’s a step forward to make yourself a financially independent adult.

3) They live below their means.

Debt-free people know that they can save more by living less. They spend less than what they earn. Remember, earning money isn’t easy. So, save for your dream house, car, retirement, and emergency fund instead of doing unnecessary purchases.

4) They think of long-term goals.

Huge discounts, 50% off, and bargain promos are indeed hard to resist. But, these are immediate satisfactions, which debt-free people ignore. It’s not about depriving yourself with luxury and pleasures in life. It’s about making smart choices. The opportunity to save for things with significant values in your future will come when you consider making clever decisions.

5) They pay in cash.

Paying in cash makes you more aware of every single peso you spend. Always pay what you can afford in cash instead of swiping credit cards. Debt-free people know the value of money in their wallets because it’s tangible!

6) They find ways to save.

Being debt-free only means that you’re smart enough to save. It is essential to find different ways on how you can save effectively without depriving yourself.

Make it a habit of depositing a part of your salary and let it add up over the years. When an emergency occurs, use it instead of borrowing money.

7) They are willing to make sacrifices.

Getting out of debt isn’t an easy task. Sometimes, sacrifices should be made along the way. You may opt to let go of some dine outs with friends, the top-grossing films of the month, and cups of expensive coffee. You can even pawn some valuable items in an online pawnshop for extra cash.

8) They know the difference between needs and wants.

Image source: Table Talk

Shopping is indeed an effective stress-reliever, but too much of it can put your finances in danger.

When shopping, keep a list of what you need and what can wait. Be responsible enough to allow yourself to think twice before buying any item, and prioritize your needs.

Debts are not meant to ruin your life forever. Take some time to develop these characteristics to free yourself from debts!