Living debt-free or eliminating all forms of consumer debt can be an incredibly liberating experience. According to Dionne Van Zyl, when you’re free of credit card bills, car payments, and student loans, it’s easier to focus on saving and investing for the future.
Instead of worrying about coming up with hundreds or thousands of dollars in monthly installments, you can concentrate on building wealth and enjoying life without any financial concerns looming over your head.
These three tips by Dionne Van Zyl for living debt-free will help you create a manageable plan to eliminate your debts and get on the road to financial independence.
Mastering the Art of Debt-Free Living; Tips by Dionne Van Zyl
1. Track Your Net Worth
According to Dionne Van Zyl, one of the best ways to get a handle on your finances is to track your net worth. Net worth is the total value of your assets minus your liabilities.
Tracking your net worth over time can give you a good idea of whether you’re moving in the right direction financially. If your net worth increases, you’re building up more wealth than you’re accumulating debt. On the other hand, if your net worth is decreasing, you’re accruing more debt than you’re building up assets. This is a red flag that you need to take action to get your finances back on track.
2. Diversify Your Income
It’s no secret that most Americans are buried in debt. As per Dionne Van Zyl, the average American household carries $137,063 in debt, which includes mortgages, credit cards, student loans, auto loans, and more. And if you’re one of the millions of Americans struggling to make ends meet each month, you may wonder how you’ll ever get out of debt.
One of the best ways to live debt free is to diversify your income. Rather than relying on a single source of income (such as a full-time job), consider ways to bring in additional money through part-time work, freelance work, or even investments.
By diversifying your income, you’ll be better able to make ends meet each month and eventually become debt-free.
3. Live Below Your Means
So many people today are struggling with debt. They’re making the minimum payments on their credit cards, student loans, and other debts, but they’re not getting ahead. If this sounds familiar, it’s time to start living below your means.
Try to be more mindful of where your money goes and prioritize your spending. When you live below your means, you free up more money to pay down your debt. You also reduce the temptation to raise new debt by spending more than you can afford.
Living below your means is key to getting out of debt and staying out of debt. Make it a priority in your life and you’ll be on your way to financial freedom.
Dionne Van Zyl Recommends Following These Tips
These tips can help you master the art of living debt-free. It’s not always an easy journey, but it is worthwhile. With these tips, there is no reason why you can’t live your life without any outstanding debt.