What’s inside: 5 pro tips to live and stay debt free; sponsored by Houghton-Mifflin Harcourt.
I love the holidays, but I always feel relieved when the seasonal expenses are behind us. This year our family focused on homemade gifts and traditions instead of extra purchases to enjoy an awesome Christmas without breaking the bank.
Staying debt free is a priority for our family’s financial future, so we pay close attention to holiday spending and keep it under control.
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Stay Debt Free: 5 Smart Money Habits to Start Today
As we head into the new year, we’re continuing our goal of becoming—and staying—debt free. While reading Liz Anderson’s book What Your Financial Advisor Isn’t Telling You, five practical habits stood out to me. They’re intended to help you remain debt free, but they apply to anyone who wants better control of their finances. For clarity, when I say “debt free” I’m excluding a mortgage, which is often handled differently for most households.
I manage our family finances, so this book was a fascinating read—I read half of it in one sitting. It covers job benefits, retirement planning, and more, but these five habits are simple, actionable ways to protect your budget and keep debt at bay. They don’t require dramatic lifestyle changes and you can start implementing them today.
Five Financial Habits from the Pros to Stay Debt Free
- Keep track of spending. Accountability matters. If you track every dollar you spend for a month, you’ll likely discover areas where you can cut back. Use a budgeting app or your bank’s tools to make tracking simple and accurate.
- Use real money for purchases. Avoid accumulating credit card balances you’ll struggle to pay off. Paying with cash or a debit card makes the cost feel immediate and often curbs impulse buys. If you must use credit, pay the statement in full each month to avoid interest unless it’s an absolute emergency.
- Don’t assume emergencies won’t happen to you. Unexpected expenses come up for everyone. Build an emergency fund by transferring a set amount from each paycheck into savings automatically. Having a cushion prevents you from relying on credit when something unforeseen arises.
- Automate to avoid mistakes. With so much happening each day, bills can be missed. Set up automatic payments for recurring bills and automate transfers to savings. Automation reduces late fees, prevents stress, and helps your savings grow without extra effort.
- Reduce temptation instead of relying on willpower. Willpower is limited and gets weaker as the day goes on. Make avoidance easier by removing triggers: unsubscribe from promotional emails, limit late-night online shopping, or put devices away before bed. Preventing impulse purchases is usually more effective than resisting them in the moment.
Want more money-saving strategies, including the one change that saves our family over $1,000 each month? It’s all in my ebook Secrets to a Successful Single Income Budget.
These five tips don’t require major sacrifices, but used together they can create meaningful savings and help you stay debt free.
For additional clear, practical financial advice, consider reading What Your Financial Advisor Isn’t Telling You by Liz Anderson.
More favorite money-saving resources
- 5 Essential Steps to Save $10,000 in One Year
- The One Lifestyle Change That Allowed Me to Be a Stay-at-Home Mom
