Bailing yourself out of debt and remaining debt-free is not so much about tackling the debt as it is about the way you live your life every single day.
I say this from experience. When you learn to be frugal instead of frivolous, you discover that you have a lot more money than you thought you did. You also find that frugality is not something to dread but rather, in its own way, is an adventure in and of itself.
Of course paying off debt should be of the utmost concern to anyone who is interested in living a prepared lifestyle but beyond that, how do you stay out of debt? To me, debt-free living is simple-living and I have definite thoughts that can help you do just that.
My 10 Tips for Debt-Free Living
There are many steps you can take to help you move towards a debt-free life, but these are my favorites.
#1 – Avoid the temptation to buy stuff when money is short.
If you don’t have money rolling in, you will have to resist the urge to spend. Too often, people decide they “deserve” to treat themselves and they go spend money frivolously when the budget is tight. Perhaps they go out to dinner. Maybe they upgrade the cable “because it’s their only form of entertainment.” Some go and buy a new blouse or scarf to give themselves a little lift. It’s easy to justify a small expenditure of $3-4 for a cup of coffee.
We don’t have to cut out all things beautiful and wonderful, but there is a time and a place for everything. When you are bailing yourself out of debt, it is not that time. Choosing to spend on small things is just as dangerous as choosing to spend on more expensive items. Small things (like that cup of coffee) can add up to an enormous amount over the course of the year. You will never see it coming as it dribbles out $5 at a pop, but by the time 12 months has passed, you may have spent well over a thousand dollars, just a little bit at a time.
When we find ourselves deeply in debt, it is sometimes because we were wasteful, and those are the habits we need to break. Remember the old adage, “Use it up, wear it out, make it do, or do without.”
Resolve to go on a personal spending freeze for a month to help break the habit.
#2 – Cover food, health, and comfort
Food, health, and comfort are categories that are open to a lot of personal interpretation. You can spend very frivolously on these items, or you can spend modestly, yet wisely.
You have to eat, so you should purchase food that is inexpensive but nutritious. It is important to do this to help prevent illness because being sick costs money in missed hours at work, doctor’s visits, and medications. On that same note, do not skimp on important medications. You also need to pay your utilities and house payments to remain comfortable and safe.
Cover your basic necessities, but spend some time learning to differentiate between wants and needs. In my article,The Sweet Spot of Frugal, I wrote:
There is not a darn thing wrong with wanting something. Where people get into trouble is failing to recognize and understand the difference between need and want. Needs are things that are required to live your life. Food, clothing and shelter, with all of their permutations, fall into the “need” bucket.
On the other hand, the want bucket includes a new car, a larger house, 20 different pairs of shoes and a vacation trip to Paris. There is nothing wrong with these things if you can afford them without sacrificing your needs or going in to debt.
#3 – Learn to entertain yourself.
We live in a world in which we are constantly stimulated. People walk around with a phone in their pocket, in perpetual contact with the rest of the world. We spend a great deal of time on social media. We watch television and movies. We have entertainment and communication at our fingertips constantly.
But all of this comes with a price, and that price is not just financial. Many people are completely unable to entertain themselves. There are many ways to entertain yourself that do not require electronic devices.
- Head out to the library and spend some time curled up with a good book.
- Do arts and crafts. You can be productive while clearing your mind. (I have recently begun coloring on a regular basis, and I absolutely love it.)
- Ban electronics from the table and actually have a conversation at dinner time.
- Take a walk outside instead of paying for a gym membership.
- Take the kids to the neighborhood park instead of paying to take them to an amusement park.
Learn to enjoy spending time quietly, without all of the stimulation. You may find a new kind of peace.
#4 – Learn skills.
When you learn a new DIY skill, it’s not just a productive hobby. It’s something that can help see you through the tough times. The ability to do things like preserve food, make clothing, build needed structures, and knit warm comfort items can make a rough spot a lot more comfortable.
Not only will you be able to provide these things for your family, but you can still give lovely gifts when the occasion warrants it, and you might also be able to make some money from your abilities. (Stuck on what abilities to master?Here is a list of productive skills.)
#5 – Cook from scratch.
If you are not already cooking from scratch, there are a lot of reasons you should be. Breaking up with processed food items will not only save you a fortune, but it will help you to become healthier. You can avoid questionable ingredients when you make it yourself, but when someone else prepares your food, you are at their mercy.
When you buy an item that someone else prepared, whether it was the person who works at the deli or the person on the assembly line at the factory, you are funneling your money into the time someone else spent making your food.Cooking from scratch is really worthwhile when it comes to flavor, nutrition, and satisfaction, and you will save a bundle. Don’t forget to use up your leftovers!
