How to live a debt-free life:

Almost all of us own a lot of things that we probably don’t use anymore. Right from owning a dream car and costly electronics that’s most likely napping in the attic, we have it all. Or you like to spend your money on expensive clothes and fine dining. Yet, we are probably still not happy! We are not happy with the choices we make, nor are we happy with the things we have. We want more. Well, that’s human nature but there is something that’s not quite adding up. Are you eager to know what is wrong with our choices?

We use debt to finance our dreams. We might have dined in a fancy restaurant more than once and I’m sure you cannot remember the last time you used cash to pay your bills. So why does this happen?  I believe a debt free life is a happy life but why are we not able to practice it? Your living by the next paycheck.

Why do we take debts?

The reason is pretty simple. We believe to live a modern, comfortable lifestyle; we cannot live a debt free life.  So we continued to borrow and buy unnecessary stuff, which is barely used. We burdened ourselves with financial worries and never look back at our choices. What would you do if I tell you that you can free yourself from these financial worries and live a happy debt free life? Before we know how to be debt free let’s see the reasons which prompt us to take debts:

Low Income:

People with low income tend to take debts to fulfill their lavish lifestyle. They do not consider their salary to be a factor which determines their standard of living. So when people expect higher paychecks but end up receiving a smaller amount, they turn to debt to keep up their lifestyle choices.

Bad planning:

Poor budgeting skills are another reason why we go for debt. Managing money is an important attribute in today’s life. Not knowing how to manage finances will always end up in taking debts. So when we plan our budget, we must consider our current salary and pay cuts in case it happens. Those who are in debt can also benefit from proper budgeting.

No Savings:

Another important factor which determines if a person can live a debt free life is their savings. Preparing and saving for the future is the smartest way to avoid unnecessary debts. Always expect the unexpected in life.

Credit cards:

The Credit card is the most used form of debt by people all over the world.  Credit cards create an illusion that we have money though we don’t have it. We tend to spend more than we can afford.

No financial communication:

Finance must be discussed among family members, parents, children, and spouses. Though it is an uncomfortable topic to be discussed, addressing it can tackle a lot of your debts.

Steps to living a debt-free life:

After seeing these reasons now it is time to see the ways to prevent it. How do we live a debt free happy life? Is it really necessary to take debts to have a comfortable life?  No, not really. So here are few of the tried and tested methods to live a debt free life.

Know your limits:

As an individual, it is best to know your limits. Know your strength and weakness. Know your ability to repay the loans. Recognizing your habits and the ways you spend is the first step of living a debt free life. Change your habits as soon as you realize its impact on your finances.

Drive temptations away:

It is best to drive temptations away. Don’t buy stuff that you probably won’t be using. It is a waste of money and time. It is best to spend money on necessary stuff such as basic food, basic clothing, and a good shelter. Over a period of time, when we spend on things that are not really necessary; we make it a habit. And this habit is hard to break. Eventually, this habit is one of the main reason for our debts.  So keep a check on those temptations and spend wisely.

Check your bank statements and credit card statements:

It is a wise decision to check out your financial statements regularly. This will help you identify unnecessary purchases that you can probably stop in the future. If you would check out your bank accounts regularly you would be surprised to see the hidden charges that are debited to your account without your approval. Similarly, make sure you check out your credit card statements and identify the places where you can most likely reduce your expenses.


In times of desperate need, do not always turn to debts. Start today and make a conscious choice to save for yourself in the future. Always be prepared for the worst. With a proper saving plan in place, you would always be prepared for the future. Saving is a wonderful habit that has to be instilled in an individual right from their childhood. So don’t wait up, buy that piggy bank for your kid right away!

Reward yourself:

Celebrate when you don’t buy unnecessary things. Reward yourself for good behavior. Enjoy when you are finally able to pay off your loans. Keep a target and close all your debts. Celebrate the small victories to motivate yourself further.

Be a smart shopper:

Be a smart and sensible shopper. Prepare a shopping list and stick to it when you do your grocery shopping. Don’t buy stuff that is not needed for the household. Be aware of the changing price trends. Make use of the seasonal benefits and discounts while you shop.

Paying loans on time:

Pay off your loans on time. Don’t wait till the last date. Avoid late fee and charges by planning ahead. Plan to pay off your loans in the shortest term possible. Be aware of the changing interest rates while you pay your loan dues.

All these small steps will not disrupt our quality of life. We can still have a comfortable yet meaningful life. Don’t burden yourself with financial worries but rather maximize your savings. You can now focus on saving plans and not on your debt. Stay stress-free. That’s how you live a pretty good life.

I am the founder of The focus of the blog is to provide useful content for people who want to improve themselves and also the tools that can help you achieve it! If you got any questions than ping me an email at I am 26 years old based in London, UK

Get yourself on a debt-free path

Imran Dean

I am the founder of The focus of the blog is to provide useful content for people who want to improve themselves and also the tools that can help you achieve it! If you got any questions than ping me an email at I am 26 years old based in London, UK

Category: Personal Finance

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