Debt freedom is a component of financial freedom. This is a time when you have paid off all your debts that has haunted you for a long time. This is a great achievement that did not come easy and you would want to keep it that way. After you have paid off your debts, you still need to exercise discipline to keep it that way. The last thing you need is slipping back to a life riddled with debt.

One of the first things you need to do is look at attitude adjustment. When you were still trying to be debt free, your mindset was to live a prudent life and practice frugal living. It was the time when you exercised your creativity in living below your means to divert more resources in settling your debts Now that you have achieved that, you are at a crossroad if you will still continue down that path or adjust your lifestyle.

To answer this question, try to remember what got you in debt in the first place. Is that the lifestyle you are thinking of going back to? Chances are, it will lead you right down the same road again. You might want to consider a change in lifestyle or better yet, stick to what already works - frugal living. Adopting this lifestyle will open a lot more opportunities for you now that you are debt free.

If it helped you get out of debt, it will also help you build up your emergency fund. Rule of thumb was you need 6 months worth of resources in case your income completely stops at any point in your career. It has now moved up to 12 months because of recent economic developments. Being debt free and living a frugal lifestyle is a perfect combination in building up your emergency fund. The money that used to go to paying off your debts can now be saved up for emergency.

One way of keeping out of debt is using cash for purchases. For you to use cash, you need plan and save up for it first. This practice forces you to veer away from impulse buying. If you need a new equipment at home, you need to look at how much the purchase will be and save up for it. There are instances that you will need to buy out of schedule when equipment break down. Never use your emergency fund. Move some other savings around but make sure that you return the money into that account.

Getting out of debt is great but staying out of it is another story. Your desire to keep it that way can dictate the way you will live in the coming years. It should not stop you from enjoying life or having a trip with your family. It’s just the approach you take should be different from now on. Instead of using your card for that trip, plan ahead and save up for it. This practice can help you stay debt free for a very long time.

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