6 Characteristics of People Who Are Debt-Free

American Investment Planners LLC

500 North Broadway, Suite 260, Jericho, NY 11753

(516) 932-5130 / (866) 932-5130

Ever wonder what people who are debt-free have in common? Could it be that they are just naturally better at handling money? Or, are there certain traits or characteristics that they possess which help them manage their finances to a greater degree? We did some research to find answers to this, and here's what we were able to come up with thanks to time.com's Money:

1. They focus on the details. Those who are in good shape with their finances tend to be extremely detail-oriented, and are committed to keeping track of every financial move they make - if asked, they can most likely tell you where every penny came from and where every penny went.
2. They're practical. Everyone would love to have a fancy car and designer clothes, but making big purchases that are sometimes unnecessary is an easy way to fall into debt. That said, debt-free people are usually very practical with their purchases, and realize that no-name brands or less expensive items can work just as well as the more costly alternatives.
3. They're willing to wait. People who are debt-free understand that instant gratification isn't always possible and recognize that sometimes, they will have to save their money and wait. For example, if they are looking to take a family vacation this year but the funds just won't be around until next year, they'll hold off until their finances permit.
4. They understand credit cards. Credit cards are actually embraced by many people who are debt-free, but the difference with them is that they understand exactly how credit cards work and realize that if they do not pay their balance in full, they'll wind up spending more. That said, they aren't afraid to use credit cards, but they use them wisely.
5. They're savers. Even if there isn't much to save, people who are debt-free save as much money as they possibly can so that they're prepared for anything that comes their way. Unexpected emergencies are a source of debt for many people, but those who are debt-free work hard to prepare themselves for anything and everything.
6. They're responsible. Most importably, people who are debt-free are responsible and understand that it's up to them to keep themselves in a stable financial position. As a result, they also aren't afraid to accept responsibility for any financial mishaps and realize that they are the ones who control their financial success.

Although people who are debt-free tend to share many of the same qualities, we at American Investment Planners LLC know that being financially responsible may also require the help of a professional. If you have questions or concerns about your finances and need some help getting on the right track, our advisors are here for you! To make an appointment with us, please call (516) 932-5130 or email info@americaninvestmentplanners.com today.