I will be debt-free by Christmas.
In just a few weeks, I will have repaid all my consumer debt. Only my mortgage will remain. It’s taken a lot of hard work and sacrifice, but the end is near. I’m wondering, though, if I’m ready for the transition.
For three years, I’ve focused on becoming debt-free. Many of you are making the same journey, and you’ve begun to e-mail me the same question: What’s it like living debt-free?
I assume that becoming and living debt-free require a similar skill set. Frugality is probably just as important to remaining debt-free as it is to reaching that goal in the first place. The concepts I learned while using the Debt Snowball can probably also be used to save for things like cars or new furniture. An abundant emergency fund seems natural, too, as do fully-funded retirement accounts.
But I worry about lifestyle inflation. I suppose it’s natural for a person to relax a bit once he’s paid off his debts, to allow himself a few more indulgences (though paid with cash rather than credit). How do you keep from reverting to old habits? How do you keep from spending too much?
How is living debt-free different than becoming debt-free?
This article is about Ask the Readers, Debt, Real-Life
SEARCH FOR RECENT ARTICLES
What’s it like to live debt free?
It’s quite lonely.
There are a lot less people you can associate with. What’s more is most people who live without debt tend to keep quiet about it.
Your troubles also change. It becomes more complicated.
In the past you saw something you really liked and the question was “do I have enough credit to buy it?”.
That’s a simple yes/no scenario.
Now you see something you like and question is “does the immediate pleasure of owning this item outweigh the long-term potential benefits I stand to loose from spending the money to buy it now?”.
That’s a much more complicated question to answer.
In the past you saw people who need money, but you couldn’t help them even if you wanted, because you were hardly making ends meet yourself.
Now, you see people who need money, and this leaves you with a hard choice.
You can spend the money to help them, but should you?
Or should you keep the money for yourself, retire earlier, save up and do the things you always wanted to do, climb a mountain, see the world, or whatever, but always know you could have helped.
Living debt free is a lot harder than I thought it would be.
loading....