I just read an article on MarketWatch.com titled “10 characteristics of debt-free people”. I am a debt-free person so I was curious to see what they have listed. You may read the original article here.
10 Characteristics of Debt-Free People
1. They pay attention to details [I totally agree with this]
2. They know their stuff [I totally agree with this]
3. They pretend they make less [I agree with this]
4. They think long term [I totally agree with this]
5. They aren’t afraid to ask [I totally agree with this]
6. They save [No brainer - I totally agree with this]
7. They set goals [Another no-brainer, I totally agree with this]
8. They say no [Skipping That Latte Alone Won’t Make You Rich! but I agree with this]
9. They know the value of cash [I personally like using credit cards so I can keep track of my expenses to pennies. I of course pay it off every month]
10. They value experiences over stuff [I totally agree with this]
Here are the Some Financial Rules that Our Family Practices:
First and foremost, have your family in order. A stable family where husband and wife have similar or same set of goals is the bedrock of financial and emotional stability.
It’s always The Family Finances, never his or her finances.
Be happy with what you have, not with what you could or should have!
Do not compete with Joneses! One of the best ways of doing this is to live in a neighborhood that does not force you to compete with others in the first place. For example, drive a modest car and live in a place where everyone drives modest cars. Don’t get me wrong competition can be a good thing, but in the case of “Keeping up with the Joneses” it can lead many to an unhappy bankrupt life.
Be mindful of your financials. Always plan ahead. Never ever carry any credit card debt. That does not mean don’t use credit cards. Do use cash reward credit cards all the time so you can track your expenses AND earn money, but don’t go above what you know you can’t afford.
Try to make as much money as you can. One of the best ways of doing this is to work for you; own a business. Keep in mind that owning a business could be as simple as having a website or selling something that is in demand and you know how to make or provide!
Save as much as you can. Choice of saving may vary, but do save!
Always live below your means, regardless of your income.
Know, plan, and track your cash flow for short-term and mid-to-long term
OVER estimate your future/potential expenses and UNDER estimate your future/potential income.
Live in a good public school district so you can avoid the expense of a private school and take advantage of the free amenities, such as library, community center, tennis court, etc.