If you are on the road of a debt-free life, well congratulations! I know that it isn’t easy but I believe that you can make it.
Family #1 manages to pay off $40,000 in debt in two years on a $35,000 annual income. Family #2 makes $100,000 a year but can’t seem to make the slightest dent in the same amount of debt.
Why is that?
Obviously, the second family has a spending problem. They make plenty of money—more than enough to pay off that debt in two years. But they have so much money going out, they can’t keep their head above water. Whether it’s in the form of an overbearing mortgage, credit cards, a hefty car payment or just making poor choices like eating out every night, their debt keeps them from making progress.
So all of their income gets sucked up by other stuff, which leaves them making minimum payments on their debts and never gathering any momentum. It’s a difficult, stressful way to live.
At some point, people who become debt-free decide that enough is enough.Their old lifestyle wasn’t working, and they’re ready to make some serious changes. It’s like they have a personality change, but that’s not what really happens. All they are doing is rediscovering aspects of their personality that have always been there.
So what are some of these traits of people who get debt-free?
They are Wise.
People who decide to ditch debt for good realize that debt isn’t a tool. While their FICO score may go down, their net worth goes up. They treat debt like it’s a skin disease—which isn’t a bad idea. Don’t you wish you could wipe away debt with a little Benadryl cream?
They are Patient.
Someone who really wants out of debt can walk right past the shoe aisle or the flat-screen TV aisle without blinking. Why? Because they know all of that stuff can wait. Impulsive, impatient purchases are debt’s best friend.
They are Confident.
People who are getting out of debt don’t care what others think. You know you’re on the right track when your broke friends are making fun of you. Getting out of debt can require drastic lifestyle changes, which means you’ll never succeed if you aren’t mentally prepared and confident in your decision to find financial peace.
They are Goal-Driven.
No-brainer, right? Getting out of debt is a goal in itself, so of course people who want to get out of debt are goal-oriented. But the catch here is that …