Debt Free Living.....Myth or Realty?

A hot topic nowadays is debt free living. This topic can be very helpful to the first time home buyer.

For debt free living, you will need the following ingredients:

- a DESIRE for financial freedom;

- the KNOWLEDGE needed to eliminate as much debt as possible (Most especially credit card debt which usually includes out-of-sight interest rates!);

- the CREATION of a reasonable family budget; and,

- the WHEREWITHAL to live within your means! I recently read an article which stated that, "On average people spend 10% more than they take home." (Is it any wonder that Americans are in financial hot water!)

Once you have a handle on the ingredients, you will need to follow the simple and basic directions below:

Any program of this kind requires a desire and commitment on your part in order to obtain the prosperous living system you desire. You may have to be committed to:

- less entertainment;

- less frivolous spending;

- fewer new cars; or,

- fewer vacations.

However, remember that once you have your debt paid off, you can SAVE for any of these items. Doing without, is only a temporary condition. However, ALWAYS try to pay with cash so you don't get yourself into the same predicament!

To begin debt free living, determine what are considered necessities and luxuries for your family. Eliminate as many of the luxuries as possible and use this extra money to pay off high interest credit card balances or loans. If you decide to begin with the elimination of credit card debt, start with the credit card with the lowest balance. Once it is paid off, cut the card(s) in pieces and throw them away. Then, call the credit card company and tell the representative that you want to close the account.

As mentioned above, in order to create a prosperous living system, you will need to create a family budget. For many people, this may be the hardest thing to accomplish in their goal of living debt free. There are several budgeting helps available through the internet. (Don't you just love the web!) Free budget calculators can be found on the internet at www.simpledebtfreeliving.com and www.personal-home-budget.com. These are only two that I found. There are a multitude of others available as well.

Once you have created the family budget, STICK TO IT! Always keep in mind what you have determined are necessities and try to keep the luxuries to a minimum. This may be tiresome at first, but eventually it will become a way of life.

As you see your credit card debt diminish, followed closely by any remaining debt you may have, you will be ecstatic with the results and with the financial freedom you will feel! Debt free living truly is prosperous living!

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