7 Habits of Debt-Free People You Should Copy

7 Habits of Debt-Free People You Should Copy

Living your life frugally is a solution to your biggest financial dilemmas. This is the secret that millennials are beginning to learn. They are more interested in having a savings account full of cash than buying a new car– that everyone is raving about on social media. Simply stated, millennials are copying the habits the debt-free moneyed people and you should too.

Here are the 7 habits of debt-free people you should copy.

1. Live below your means

Living below your means is to not to spend way less than your budget(based on your current income). Most people who are debt-free do not buy things that they cannot afford in cash. Their assets take care of expenses like buying a new car, renovating the house, education fees, etc.

2. Always have an emergency fund

An emergency fund is a special bank account that you can rely on if the unexpected should happen. You cannot be like one of those YOLO people who spend all their income without saving anything. An emergency fund will be your safety net if you run out money in the future.

3. Keep an eye on your credit score

credit score

Your credit score is an important figure that tells you a lot about your spending behavior. If you are someone who spends a lot without even with a bad credit score(not paying your credit card bills on time), you should think hard about how this will affect your overall credit history.

4. Set a budget for everything

The best way to set a budget is by maintaining a personal income sheet with income vs expense pie chart in it(for visual representation). In Google sheets, you can create a pie chart, link it to respective columns and observe your spending behavior regularly.

5. Window shop and take your time before you buy

window shopping

Window shopping may seem annoying to the store managers and staffs but it will help you make better buying decisions. You can also take your friends along with you and make window shopping a fun experience.

6. Have more than one way of earning money

Replying on your day job for livelihood is one of the mistakes you can make. Debt-free people work more than one jobs to make sure their finances are always under control. Apply for part-time jobs like teaching, consulting, coaching, etc and save the money you earn to continue living a debt-free life.

7. Truly believe that “all good things are wild and free”

Henry Thoreau once said, “all good things are wild and free”. This stand 100 percent true even in today’s economy. Just think about it. Most good things like relationships, nature, fresh food, etc are completely free. Debt-free people understand this rule of nature and follow it without fail.


There is no secret to living a debt-free life. Try to ingrain the above-mentioned habits of wealthy people and you will be debt-free within no time. Being debt-free has to do a lot with your relationship with money. A good relationship with money will always lead to you living a debt-free and rich life.