What being debt-free really means.

Despite a good position and steady salary, you might find yourself in debt and feeling the financial and emotional stressors of this state. In addition, many people believe that being in debt is just part of life, that it’s a sign of adulthood, or simply an inevitable trap once you start earning and spending.

However, this doesn’t have to be the case. Financially successful (and secure) individuals understand that unnecessary debt is a trap – one that stops you from living your life to the full or enjoying (and growing) your wealth. It’s important to remember that being debt-free does not mean having no bills to pay (we all have to live and most of us have monthly expenses necessary to maintain our lifestyles). Also, very few people have the financial means to pay for things like a university education, a house, or a car fully in cash – that’s why they have manageable debt.

With this in mind, being debt-free means being able to pay your monthly contributions on time and in full, and being free of unnecessary debt such as unpaid credit card bills or shopping accounts. It means being in control of your finances, knowing how to manage your savings and investments, and having a clear plan for the future of your financial wellbeing.

 Four big benefits to living debt-free

1. Less stress

Being in debt is stressful in every possible way, from your pocket to your emotional state. Worrying about how you’re going to make your next debt payment can take up valuable creative and down time. Imagine the relief you’ll feel when the only debts you have are manageable ones that work as part of your bigger financial plan.

2. The chance to save more

No longer needing to pay off debt (and the hefty interest bills that come with this commitment) means you might have extra cash available at the end of the month. Start with saving for an emergency fund or your retirement and watch your money work for you.

3. The ability to do more with your money

When you’re not weighed down by debt, you can start considering how best to use your money to grow your wealth. How much better would it feel to be able to invest your money rather than use it to on repayments?

4. Having fun with your wealth

Being debt-free means fewer obligations and less guilt. When you work from a solid financial base, you can plan to have a little fun with your money as well as watch it grow. An overseas holiday, a new hobby, an indulgent gift? With the right financial planning tools, these ambitions could become realities rather than pipe dreams.

Need a plan for taking control of your finances and moving your financial life from one of lack to one of wealth? Talk to us – our team of experienced wealth managers can help you craft a financial plan (with everything from insurance to investment management) to help you make the most of your wealth, today and into the future.

As wealth management experts, we can help you take control of your finances with bespoke financial plans.