Today I will be discussing 14 habits of debt free people and how they can adopt

Have you ever considered being debt free to be a habit? It’s probably not something we would consider often. We think of habits as things like eating healthy and exercising, something that is a regular practice. But being debt free definitely falls into this category.

You see, spending money is a habit, accumulating debt is a habit and therefore breaking this habit requires the creation of another habit – one that is the habit of being debt free.

t is a conscious choice, an effort and a decision that is made, to be debt free, and there are habits that those who are debt free have. Things that help them remain within their free of debt status, and it’s not as simple as creating a budget.

If you’re on the path to becoming debt free, then it’s a good idea to start creating some of these habits for yourself. Don’t stress about trying to add them all in at once – that’s the thing with habits, they take time to create (and that’s okay).

Perhaps you already do some of these things? Or maybe you’re looking for new habits to add in.

Either way, here are 14 habits of debt free people that you can adopt into your life too.



14 Habits of Debt Free People 

They stick to a budget

Budgeting. Such a dirty word for so many people, but it doesn’t have to be. Having a budget is the best way to make sure you never end up in debt again.

When you have a detailed budget, you know exactly where your money goes and when it needs to go there! This means that there are no surprises and a much smaller chance that you’ll have to use an emergency credit card.

People who are debt free love a good budget because chances are that is exactly how they got out of debt in the first place!

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They save save save

This might sound strange but it’s so important to save. If you truly want debt-free living then saving must become normal to you.

For the longest time, we didn’t save any money, partly because we felt that we weren’t in a financial position to be able to do so but also because we just weren’t used to it.

Saving actually felt like a punishment.

In order to save money, you have to have a positive attitude towards it.


You must habitually, purposefully do it otherwise you won’t do it at all. Believe me, I’ve been there.

In the past, the only time I have successfully managed to save was when there was something that I really wanted and my goal was to reach it.

Like the time we needed a bigger house or the time we needed a second car.

Set yourself saving goals, long term ones as well as short term goals. This will make it so much easier for you to save up your money.



They track their spending

Debt-free people always track their spending and are always aware of their money routes. If you will not track your spending, your budgeting will not be as efficient as it should be. Before budgeting for your next month, when you track your last month’s spending, it becomes easy to create a budget and make any changes you need for your next month.

You might agree with me that every purchase we make seems to be very important to us. We are living in a materialistic culture, where much of the attention is given to owning things, even if we don’t need it. I think you will agree with me on this one that If you want to be debt-free, you have to track your spending and figure out the unnecessary purchases.

It will be easy to figure out your budget when you know, exactly where your money is coming and where it is going. There are a lot of apps to track your expenses but you can do it old school way also. Take your pen and paper, and start writing down your expenses. This is the best habit you can develop to stay debt-free.

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They live below your means

Living below your means basically means that you spend less than what you earn. It may sound obvious and simple, but the reality is that many people spend all of their income each month.

It is easily done, especially if you do not have a budget in place or do not look at your bank statements.


If you look at many successful people, you can see that they live below their means. What this means is that they do not spend all of their pay-cheque each month – they save a lot of it instead.

If you want to get out of debt and stay out of debt, living below your means will be the key to doing so. You aren’t going to get anywhere fast if you waste all of your money each month!



They have a financial goals

Having financial goals is great because it keeps you motivated to work towards something you actually want to achieve.

Financial goals are very subjective and not one size fits all. One person’s financial goal might be to become a millionaire by 50, and another person’s goal might be to get out of debt by 30. It all depends on you and your specific circumstances.

Once you know what your goals are related to your finances, you can start coming up with a plan.

If you are someone who has a lot of debt and wants to pay it off before you turn 30, look at how much you owe. Then, calculate how much you would have to pay every month until you reach 30 to pay it all off.

Sometimes, you may find that you can’t reach those goals in the exact time-frame you set out for yourself. And that’s ok. In that case, set smaller goals which will ultimately get you to your bigger goals and to where you want to be with your finances.

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They have an emergency fund

Take some of the stress out of life by building up a solid emergency fund for rainy days.

It’s not a case of if you’ll need that money someday, it’s when.

Boilers break, cars need repairing, jobs don’t work out and unexpected bills can land on your doorstep at any moment. If you’re not financially prepared for these situations, then you can end up resorting to credit cards or loans to help you out. That’s how you end up in serious debt, and it makes an already stressful situation much, much worse.

Work on building up a rainy-day fund that’s enough to cover 3-6 months (or more if you can!) worth of bills and living expenses should you not be able to work for any reason.

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They pay their bills on time

I cannot stress the importance of making sure you pay your bills on time. I know there are situations that occur that are sometimes out of our control but being financially savvy and creating good money habits is about avoiding debt and financial trouble.

There are legitimate reasons why you may not be able to pay your bills on time but there are also reasons that just boil down to not making the correct money decisions.

Your bills should come before anything else. That’s why I always recommend paying your bills as soon as you’ve been paid. That way all the important stuff is out of the way and you don’t have to worry about keeping your money back to pay off your bills.

Aligning all your bill payment dates is another really handy tip to ensure that your bills are all getting paid on time. Make sure all your bills have the same payment date or are very close together rather than being spread out across the month.


They know the difference between want and need

Another important habit to have is the ability to know the difference between a want and a need. Making a poor purchase on a want will give you temporary satisfaction, while buying something that you need will be enjoyed long after and won’t be a straining burden on your finances.

When you’re weighing a purchase, you need to take a look at whether it will add more value to your life, or if it will be a setback in your long-term goals.

That’s not to say that you should never buy something that brings pleasure, but you should always consider what value it adds to your life.

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Put side hustle money to one side

I made the decision that any side hustle money was to be put in a separate pot.  I’m not what motivated me to do this in the first place but it worked wonders.


Seeing my side hustle income grow independently made me realise how hard I have been working to achieve it.  It also inspired me to make more.

When the figure didn’t grow much over one month, it would give me a kick up the bottom to find more ways of producing income.

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They have a positive money mindset

A money mindset is the attitude you have towards your financial situation.

If you have a negative mindset and continuously think this is the best you can do and it won’t get any better, then that’s where you’re going to be stuck.

If you always focus on what’s wrong, it’ll be impossible to stay motivated. By changing to a positive money mindset, you’ll start making better choices about your finances.

People who are never broke know that money always comes back to them. Just keep thinking to yourself or saying there’s more where that came from.

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They surround themselves with like-minded people

Motivational speaker Jim Rohn once said, “You are the average of the five people you spend most of your time with”. We are greatly influenced by relationships and those who are closest to us. These relationships can impact our life in general and our financial life too.

We all have to make tough decisions at some point, especially if you are trying to get out and stay out of debt. That’s why it’s so important to surround yourself with positive and supportive people who will cheer you on as you make progress towards achieving your financial goals.


They value experience over things

One of the habits of debt free people is that they don’t focus on material things. They understand that stuff can never be a replacement for meaningful relationships with their family and friends.

People who are determined to get out of debt know that experiences make them happier than things, so they stay focused on reaching their goals.


They pay attention to detail

Debt-free people know that tracking their spending is the first step in getting control of their finances. This allows them to see if there are any money leaks in their spending so they can eliminate unnecessary expenses.

They also notice if an incorrect charge appears on their bill and are less likely to miss a payment due date.


They do their homework

One of the habits of debt free people is that they understand the importance of doing their research. They understand the basic concepts of personal finance so they can gain control of their money and make informed decisions. They don’t let others make important decisions for them.

They think long-term when making any big purchase and they are not afraid to be pro-active or negotiate to get a better deal. They actively seek out opportunities to save money and increase their income on an ongoing basis.


14 habits of debt free people – Final thought

If you want to become debt free (and stay debt free), then adopt these 14 habits of debt free people. The best part? You don’t have to wait until you are debt free to do these things.

Start following these 14 habits of debt free people and they will become YOUR habits as well!

What habits do you need to work on to help you become debt free?  And which ones are you already rocking?  Comment below because I’d love to know!

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