Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.
Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.
Debt-Free Financial Longevity

Basically, the concept of long-term debt-free living involves getting out of current debt in an organized smart way and remaining debt-free for the remainder of one’s life. The process is not “rocket science,” but it does involve setting goals, establishing benchmarks along the road toward those goals, and then the self-discipline to maintain a debt-free lifestyle.

Rule Number One

The first rule is that one must have a budget which allows living within one’s means. No goods or services are purchased unless there is the cash to do so. If a consumer can begin adult life in this manner and remain true to this rule, there will never be any debt. Exceptions to this rule would include a mortgage loan for a home, because this is an asset which will continue to appreciate in value. At times, cars are purchased on time, but the important rule is that the consumer never owes more on the car than the car is worth, and that the car will continue to be owned after the loan is paid off.

Rule Number Two

The second rule is to pay oneself first. This means that, each and every month, there is a set amount that is placed in savings or investment, without fail, just as if it were a bill. If this becomes a habit, and the amount increases as income does, the compounded earned interest will multiply more than one can imagine. A good rule of thumb is to save 5% of one’s monthly income, as a minimum. To point out the importance of savings, an individual who is able to save $285 a month from age 25 through 60, would retire a millionaire at age 60.

Rule Number Three

Never charge on a credit card what you have cash to pay for, and charge only those things that are emergencies or absolute essentials. If charges are made, commit to paying off the entire balance when the bill is due, even if it means putting less in savings that month. The savings in interest charged on the balance will be worth it.

Rule Number Four

If there is currently credit card debt, place all disposable income toward paying off the balance of that debt. This does not mean that one stops saving, because savings is the long-term practice that will keep you out of debt and guarantee a retirement of financial freedom.

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