Now Living Debt Free

Living debt free is easy to say, but doesn’t see very easy to actually do.  Most people who are living frugally will tell you that getting there is easy, it’s staying without debt that is the rough part.  We here at Now Living Debt Free know that being debt free is easier than most would think, so we are dedicated to showing you how it’s done.

For most people, our financial lives have three basic debt aspects: a mortgage, vehicle(s), and over-spending.  Of the three, the last is the worst as credit card debt has the highest interest rate attached to it and is the one of the three that is most likely to grow and keep growing.

By living cheaply, the last (and worst) type of debt can be avoided.  This comes down to budgeting, of course, and staying on that budget.  That’s a lot easier than people think, as living frugally requires only that you rethink some of your expectations of what a “need” and a “want” are.

Second-hand goods can be as good (or better) than brand new ones and much, much cheaper, for instance.  Making things at home can be more fun and more family-friendly than shopping for them - Halloween costumes, Christmas decorations, and so forth are all more fun as a family than off-the-shelf.

Being debt free is all about eliminating those things that are putting you into debt to start with.  Moving to a lower-cost area with cheaper real estate and lower costs of living is a big step that many make once their credit cards are under control (or gone).  A house in the city, while convenient, can cost 2-3 times what a house in the suburbs will.  Often the difference can be several hundred dollars in mortgage savings monthly and tens of thousands over the life of the loan.  Many find that this can also make a 30 year mortgage into a 15 year mortgage that they can more easily pay off faster.

Spending the money to get quality vehicles is something that seems counter-intuitive, but being frugal isn’t the same as just being cheap.  Pay for what will, in the long run, be more worthwhile and you’ll save over time.  There is no reason a good car can’t run well for 10 years or more with proper maintenance.  This means the car can be paid for in 3-4 years and be driven for twice that without a payment.

Overall, living cheaply and being debt free is not difficult if you can just rethink what is really needed and what you just think you need.