The ultimate dream of living a debt free lifestyle can be accomplished with discipline and planning. Most Americans have a tendency to live above their means. Since the economic state of the economy has caused job-loss all over the country many Americans are changing habits by choice or forcefully. There are many ways to establish a debt free lifestyle.
Purchasing a home
When purchasing a home you should look into a home which has a space you are able to rent out. Having a rentable space offsets the cost of your mortgage and also allows you to pay off your mortgage quicker. Renting out a space helps alleviate financial struggles if you suffer from job loss or if you had to take a pay cut.
Buying used vs. new
Buying used usually means you purchasing an item well below market price. When you purchase an item used make sure it is good condition or make sure what needs to be fixed can be done cheaply. When buying a car you can find deals usually when you buy from distressed owners. Used products are usually within range of a cash purchase which is in line with living a debt free lifestyle.
No new debt
There is no sense working hard towards paying off debt if you are going to purchase something on credit. Often times people make a poor decision of working hard to pay down debt so they can acquire new debt. If you plan on paying for everything cash chances are you will not need credit. Example: Let’s say you were able to payoff your house within ten years because you rented out a space.
Once your mortgage is paid for do not look to purchase a new home instead use the money and renovate to create a new living space. An alternative to another home purchase is build your investment portfolio by investing more in your IRA, stocks, mutual funds etc. A good financial plan will keep you busy with making better investment choices as opposed to acquiring debt out of boredom. Paying for everything cash enables you to get away from debt for ever.
When it is time to retire having a debt free lifestyle allows for you to live comfortably or stretch the lifetime of your retirement savings. Living debt free enables you travel the world and enjoy your money because you are not getting into debt. Retiring debt free is a dream very few are able to accomplish.
Establishing a debt free lifestyle can be a challenge, but with discipline and planning it can be accomplished. Living a debt free life is something very few achieve, but can be accomplished. Good luck!