10 Key Characteristics of Debt-Free People

[Peace Of Mind]

1. They are Detailed Oriented
2. They realize Debt is a Mortgage on their Future
3. They're Pragmatic
4. They're Self-Reliant
5. They aren't Addicted to Shopping
6. They're Patient
7. They're Self-Confident
8. They realize that Credit Cards are a Double-Edged Sword
9. They believe in Personal Responsibility
10. They are not Materialistic

The entire article: lenpenzo.com/blog/id1261-10-key-characteristics-of-debt-free-people.html

What traits would you agree or disagree with? What traits would you add to this list?

Personally I have all of them, in moderation. It does make life easier to live.

[thyme4change]

I'm not patient.

[dancinmama]

POM: I would say that's a pretty good list. We are debt free except for our mortgage and always have been.

[dancinmama]

Jan 24, 2011 17:46:38 GMT -5 thyme4change said:

I'm not patient.

I thought about that too, but then I read the article. The author is not talking about patience in general, but patience when it comes to wanting something and buying it. The description "patient" had more to do with being able to deal with delayed gratification than general, everyday patience.

[thyme4change]

I'm lazy - maybe that translates to patient. I would rather sit on the couch and not buy something then to own it at the cost of actually getting up and going to buy it. Maybe not lazy - maybe just busy.

I don't know. But a lot of spending that I haven't done is because I just don't have the time or energy to do it.

[Deleted]

Jan 24, 2011 17:36:21 GMT -5 Peace Of Mind said:

1. They are Detailed Oriented
2. They realize Debt is a Mortgage on their Future
3. They're Pragmatic
4. They're Self-Reliant
5. They aren't Addicted to Shopping
6. They're Patient
7. They're Self-Confident
8. They realize that Credit Cards are a Double-Edged Sword
9. They believe in Personal Responsibility
10. They are not Materialistic

Sounds like me and my husband!
And we enjoy not having debt.

[Peace Of Mind]

Jan 24, 2011 17:50:41 GMT -5 dancinmama said:

POM: I would say that's a pretty good list. We are debt free except for our mortgage and always have been.

Dancin: That's us too and we've been this way for many years.

Thyme: I have no patience with most people, but with finances I seem to be pretty patient. I would love a lake house now, and could probably pull it off. But it would be a huge gamble! So I'll be patient and 1. Figure out what kind of place we really want; and 2. Make sure we have more than enough money to pay for it.

We've already obtained the property on a private, spring fed lake and there is no mortgage on it. I'm also being patient about getting our boat. Right now we just have a canoe.

[Deleted]

I think I'm materialistic, but not about the stuff most people are. I don't care what brand my purse is, and a lot of my clothes are really older. (Can you really pull off being a fashionista as a 57-year-old teacher? My students would laugh behind my back. I just wear decent looking clothes.)

But I just bought an Ipod shuffle!!!! It was for no better reason than my birthday is Thursday. I had a clunky old MP3 player, but this was so cute and little.

Um, my splurge cost me $49. So maybe that's the secret of my financial "success" (no joke). Keep your wants minimal.

[Deleted]

I think the patience thing has to do with 'instant gratification'... ie. I need this NOW... i don't want to wait...

I'm not sure its inclusive, and some actually overlap, but i'd say the list is a good place to start at any rate...

[vonnie6200]

11. Have the ability to see future consequences of their choices

[Urban Chicago]

I would add that they avoid financiall unsound personal relationships (like a spendthrift spouse or parents who think you should support them).

[cronewitch]

Fear of the future like it will really happen, we will really get old and not be able to work or want to work. Things really will go wrong, some can be fixed with money.

[blackcard]

12. They save money by not paying for things that are already free.
[ Cable TV or Satellite radio ]

[Miss Tequila]

Jan 24, 2011 17:36:21 GMT -5 Peace Of Mind said:

1. They are Detailed Oriented
2. They realize Debt is a Mortgage on their Future
3. They're Pragmatic
4. They're Self-Reliant
5. They aren't Addicted to Shopping
6. They're Patient
7. They're Self-Confident
8. They realize that Credit Cards are a Double-Edged Sword
9. They believe in Personal Responsibility
10. They are not Materialistic

The entire article: lenpenzo.com/blog/id1261-10-key-characteristics-of-debt-free-people.html

What traits would agree or disagree with? What traits would you add to this list?

Personally I have all of them, in moderation. It does make life easier to live.

That's a really great list. I have all of those traits, except number 8. I use credit cards to pay for EVERYTHING! I even charge my $1.69 DD coffee each morning. I love the cash back. Of course, I never buy anything that I can't afford to pay in full when the bill comes so I have never had to pay interest....but

[spartan7886]

I'm not detail oriented. My DH is, but I was debt free before I married him too. I generally figure as long as income is greater than outgo, I'm good.

I have to agree on number 8 as well. I know that, I guess, but it just never really occurred to me not to pay it in full every week. The only real danger is buying more stuff paying with plastic than cash, but since I'm too lazy to shop, it's not a real concern.

[Deleted]

Well, being debt-free also comes with some other traits that are not that admirable. Most people that have the mindset that being debt-free is very important also have a problem enjoying the money they spend. My dad was like this, until recently, and it almost got to the points where vacations made him stressed. Because instead of enjoying his time, he stressed about how much things cost.

There is a balance. Most people obsessed with penny-pinching don't strike it.

But anyways, I'm more concerned with wealth-building as opposed to being debt-free. Paying off your mortgage in 15 years doesn't really impress me. You lose the compounding effect of the money you used to pre-pay.

[stillontheroad]

I think it's a decent list. I don't subscribe to the theory that being debt-free is the ultimate financial goal (I don't see anything wrong with low-interest debt if it's used wisely, and I would never prepay a low-interest loan), but it sounds like the list is focused on avoiding credit card debt and that sort of thing, which is definitely a good idea.

12. They save money by not paying for things that are already free.
[ Cable TV or Satellite radio ]

I disagree on this. First of all, paying for cable TV or satellite radio isn't paying for something that's already free - you're paying for different programming that you can't get for free. Second, cable TV and satellite radio aren't any better or worse than any other discretionary purchase: if you can afford it and it makes you happy, great. If you're going into debt to buy it, then yes, it's a bad idea.

[caddy]

I agree that patience = self-control, as others have mentioned. I was just reading in Time about a new (obvious) study linking self-control in early childhood to better health and wealth in adulthood.

healthland.time.com/2011/01/24/the-key-to-health-wealth-and-success-self-control/

[973beachbum]

What traits would you add to this list?

I think it is universally accepted that they are also tea totalers.

[AgeOfEnlightenmentSCP]

And here I thought there was only ONE key characteristic, or maybe TWO: they spend less than what they earn, and don't borrow money. If they do borrow money, they pay it back.

[Wisconsin Beth]

Jan 25, 2011 14:31:05 GMT -5 973beachbum said:

What traits would you add to this list?

I think it is universally accepted that they are also tea totalers.

I guess that leaves me out...

[ronbuck]

I would suggest that they have very good boundaries, probably in all areas of life, but certainly in financial matters.

[ronbuck]

Jan 25, 2011 16:09:54 GMT -5 Wisconsin Beth said:

Jan 25, 2011 14:31:05 GMT -5 973beachbum said:

I think it is universally accepted that they are also tea totalers.

I guess that leaves me out...

Me too. Although in my (relatively) younger days I drank very little because of the cost. It is somewhat embarrassing to admit that the cost of a six pack of beer was an issue 10 or 15 years ago....but it was.

I am not a big drinker, but usually have a glass or two of wine at night or a cold beer in the summer months. After a fair amount of experimentation I have found quite a few nice wines that are actually inexpensive. And that is for company. For daily use I drink a box wine which is very inexpensive, but still palatable.

What I won't do is drink in bars or restaurants. I don't go to bars anyhow, and hate paying $6 or $7 for a glass of house wine which isn't any better than I drink at home for a fraction of the cost.

I suspect that spending on alcohol is like other kinds of spending. Those of us who are frugal tend to be moderate in our tastes and consumption rather than living the "high life", helping us to avoid consumer debt.