Anna Matalas today published an interesting article about what characterizes debt-free people. No less than six habits have been found that characterize debt-free. Some of the habits are very easy to follow, others require a little more effort. Two of the simpler habits were to trade in cash instead of payment cards and to pretend that you make less money than you actually do. Apparently, you generally value the value of money more if they can be held by hand, unlike if they are a figure on a balance screen.
Interesting how much psychology can record sometimes!
Another habit was that debt-free people have good control over the details of their finances, they know when bills are to be paid and they check their account more often. This habit, some may think is a little more difficult to get into, compared to just starting to pay with cash, on the other hand, once you get into it, as with all other habits, there is no weirdness at all after a while.
Habit is that debt-free lets become impulse purchases.
Debt-free people are also not afraid to ask for help with financial advice. The saying “the person who does not ask does not know anything” apparently seems to apply to his own private economy as well. The last habit that characterizes debt-free is about the recurring set of savings goals – and what they want to do for the money they save. If you have a clear picture of what you want to do for the money you save, it is naturally easier to resist the small purchases that dig holes in the wallet.
Maybe you already have some, or even all, of these habits.
If not, it might be good to at least test these exercises and see what is right for you. Different habits work differently on different people and it is important to find what exactly helps you find the motivation for your savings.