By Ahmad Davis
Special to Inside The Pew
People who are debt-free got that way because they operate a little different from everyone else. If you want to be debt free, this is a road map for you. “Keep out of debt and owe no man anything, except to love one another;…” Romans 13:8 (AMP)
1. They get help being organized
Paying off debt means knowing what you owe, developing a budget and sticking to it. Debt-free people keep track of their bills, how much they earn, how much they save and how much they invest. They learn from experts and have systems in place to help them tell their money what to do, whether it’s an Excel file or another program.
2. They have a lot less stress
Debt creates stress. I did (a long time ago), and most people around me go into debt to relieve stress, whether it is buying a new car to replace an older one, buy some new electronic, go on a vacation or going back to school to increase your earning potential. No matter the reason, the bill on the other end causes stress. So us “debt-free” people do not create a bill to relieve stress, they pay for it with cash, solve the same problem, but do not have a bill at the end.
3. They use a budgeting system
A budget is simply a way to tell your money what to do instead of just wondering where it went. Debt-Free people use their budget as a system to make sure the most important things always get taken care of first and they invest, save, and have fun on purpose.
4. They pay cash
When you are getting out of debt, you learn how to use cash to manage your impulse areas. After you get out of debt, you use cash to fund your impulse areas.
5. They understand credit
Credit is not evil. It is a short-cut. It is the “Hare” in the tortoise and the Hare story. The person who uses credit is trying to get to the end fast. The problem is that the tortoise won the race every time.
6. They maximize value
I was talking to a relative of mine this weekend and she was wondering if we could find cheaper cuts of steaks in Texas (that is where I live) because of the cattle industry being so close. My response was that we should definitely be able to find a better quality.
Debt-free people are not looking for cheaper products, they are looking for high quality at a better price.
7. They’re more patient
The patience produces higher quality purchases, the higher quality purchases mean less maintenance and upkeep costs, the lower upkeep costs frees up more money to make more high quality purchases.
8. They compare before they buy
The general rule of thumb is that they do not pay full retail. This applies to small things like shoes all the way up to high ticket purchases such as boats, ATV’s, and homes. They will let the high impulse consumers test the market and measure their reviews of products and services to measure value and quality.
9. They’re not materialistic
Debt-free people might like nice, shiny toys but they don’t define themselves by their possessions.
10. They are loyal
Because of the time that is put into finding high quality products and services, once they find a service that meets their standards, they become very loyal patrons. Over time, the debt-free individual starts to occupy their time using high quality products, receiving high quality services at average prices.
Ahmad Davis is a coach with Victory By Design, a firm based in Beaumont, Texas, serving clients locally, nationally and internationally. Ahmad provides solutions for individuals, couples, and businesses who are overwhelmed and stressed financially. Ahmad’s typical clients’ are pastors, single parents, lawyers, couples, doctors, business executives, newlyweds, business owners, and others who want a simple solution with remarkable measurable results. For more information, visit http://www.thebiblicalblueprint.com. To get your questions answered on the Inside The Pew Forum, email Ahmad at firstname.lastname@example.org.