Episode: 353 - Adopt These Seven Debt-Busting Habits
Join our Roots waitlist: https://www.debtfreedad.com/
If you’ve been tirelessly trying to pay off debt but find yourself stuck, you’re not alone. Many people struggle not because they lack the desire to be debt-free, but because they haven’t adopted the habits necessary for financial success.
Here, I’m sharing seven habits consistently practiced by those who achieve debt freedom, habits that have personally helped me stay debt-free for over 12 years.
- Track Your Spending, Even When It's Painful
The road to financial freedom begins with understanding where your money goes. The first time I tracked my spending, it was eye-opening and uncomfortable. My expenses on fast food and impulsive purchases were staggering. However, facing these numbers allowed me to identify areas where I could cut back and begin changing my spending habits. It’s daunting, yes, but crucial for improvement.
- Create and Stick to a Budget
Many see budgeting as restrictive, but it's actually liberating. Assigning a job to every dollar and setting financial goals turned my perspective around. Suddenly, I could save and pay down debt effectively. Remember, a budget is not a punishment—it's permission to use your money purposefully.
- Stop Using Credit to Cover Gaps
Relying on credit cards to make ends meet is tempting but counterproductive. True change began when I stopped using credit and learned to manage with what I had. Eliminating credit card dependence was a turning point in my journey.
- Build a Starter Emergency Fund
Without savings, even a small emergency can lead to further debt. Saving a modest amount, such as $500, can create breathing room and reduce reliance on credit. Even a small emergency fund can significantly lower financial stress and aid in debt reduction.
- Don't Let Setbacks Derail You
Perfection isn’t required to succeed; persistence is. Mistakes happen, but learning from them is key. When setbacks occur, rather than giving up, assess what went wrong, reset, and continue on your path. Winning with money doesn’t mean never failing—it means not quitting.
- Celebrate the Little Wins
Each step towards debt freedom, no matter how small, is worth celebrating. Paying off my first credit card felt monumental, sparking the motivation to continue. Recognizing and celebrating these achievements fuels the momentum needed to reach larger goals.
- Surround Yourself with Support
Going it alone is sometimes necessary, but it makes the journey longer and harder. Having a community or accountability group provides encouragement and support that can make a huge difference. Being part of a group committed to financial goals offers both motivation and accountability.
Conclusion: Start Today with Just One Habit
These seven habits, when built gradually, can transform your financial life. Start with one today; you don’t need to implement them all overnight. As you work on building these habits, the results will come. Remember, progress does not require perfection—consistently showing up is the key.
Take control of your finances by integrating these habits into your life and watch as they pave the way to financial security and freedom. You've got this!
Resources
The Totally Awesome Debt Freedom Planner https://www.debtfreedad.com/planner
Connect With Brad
Website- https://www.debtfreedad.com
Facebook - https://www.facebook.com/thedebtfreedad
Private Facebook Group - https://www.facebook.com/groups/debtfreedad
Instagram - https://www.instagram.com/debtfreedad/
TikTok - https://www.tiktok.com/@debt_free_dad
YouTube - https://www.youtube.com/@bradnelson-debtfreedad2751/featured
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Brad Nelson:
So if you've been trying to pay off debt but feel like you're stuck, you're on repeat, you make some progress, then you fall backwards. Right, if you feel that way, you're not alone. Most people don't fail at getting out of debt because they don't want it bad enough. They fail because they never learn the habits that actually lead to success, and in today's episode, I'm going to be sharing the seven habits that I've seen time and time again in people who win and get out of debt, including how I used all of these to pay off all of my debt and now been debt-free for over 12 years. Let's get into it. Hey guys, welcome to today's show. My name is Brad Nelson, the founder of Debt-Free Dad, so I want to break down these crucial debt elimination habits for you, and I can promise you, if you start using these, your finances are drastically going to improve over time. So here it is. Habit number one they track their spending, even when it's ugly. Now here's the thing I remember the first time I wrote down every dollar I was spending and I got to tell you it was embarrassing. It made me sick to my stomach when I actually seen where all my money was going Things like fast food, all the random impulsive store runs and things I was buying I didn't need, or the gas station snacks and beverages because I didn't plan ahead right. I had no idea how much I was actually wasting, but once I saw it on paper I could finally start to change it. Highly effective debt payers. They don't avoid the numbers, they face them. And guys, I get that. It's scary. But once you do this, you are going to be eyes wide open. You're going to start to understand that you have dollars sitting right at your feet that you could use to start improving your financial life right away. Habit number two they budget every single month and we do it on purpose right Now. Here's the thing I used to hate budgeting. I used to hate the word budget. I thought it meant I couldn't have any fun or it was like this whip or this punishment, right. But once I started giving my money a job, once I started creating some short-term and long-term goals and I was starting to put money towards that stuff, everything started to shift for me. Amazingly. I started to build a savings account. Amazingly, I was starting to be able to make progress in paying down debt. A good budget, remember it isn't a punishment, it's permission to have fun and spend the money the way that you want. And people who succeed, they don't just make a budget, they actually use it and they follow it.
Brad Nelson:
Habit number three they stop using credit to cover the gaps. This one was really tough for me. At first, I used credit cards all the time to survive, to get by. When I overspent and spent all the actual money I had Groceries, obviously I was swiping Unexpected bills. I was swiping, going out and having fun. I was constantly swiping. But here's the thing you can't dig out of a hole while you're still digging that hole. And I know that that's like no, no, duh, brad. But you know how many people that say I want to get out of debt, but they never stop using debt. Right, they were just like me and I continue to swipe. So my turning point came when I actually caught up and broke up with my credit cards and made the decision to figure it out with what I had. That's when things began to change and I was started to be able to fill in that hole and start to get out of debt.
Brad Nelson:
Habit number four we build a starter emergency fund. Now, one of the biggest reasons people use credit is because they don't know how to save. They don't have a savings, and I get that. I don't feel bad because I was the same exact way. In fact, upwards of over 60% of the population in the United States can't survive a $500 emergency without going into debt. But here's the thing when I saved my first, say, 500 bucks, something clicked. That little bit of money. It gave me much more breathing room and I could feel less stress. It helped me stop relying on credit every time life threw me a curveball. So effective debt payers. They build a savings account, even if it's small. To start Habit number five, they don't let setbacks derail them.
Brad Nelson:
Now let's be honest. I messed up a lot. Even today, I'm debt-free and I still mess up. I'm human, right, we're all human. We're gonna make mistakes. But I'd blow my budget, I'd forget about some bills, I would spend money on things that I shouldn't have, but I didn't let that be the end. I say you know, it's okay. What can I learn from this? Then I would just reset and just keep going. Remember, the only way to learn is to fail, and you are going to fail when getting out of debt. There is no linear path. You're going to have setbacks. They are going to happen, but you just got to stick with it. So the people who win with money they don't need to be perfect. They know that they're not perfect, they just refuse to quit.
Brad Nelson:
Habit number six they celebrate the little wins. Now, I remember when I paid off my very first credit card. It was a very small balance, but it felt like I had climbed Mount Everest because I was terrible with money. So getting that win, it felt amazing and that momentum, that stuff really matters. Highly effective debt payers. They keep their energy up by recognizing their progress and celebrating all of the small wins, no matter how big or small they actually are. And then, habit number seven don't do it alone.
Brad Nelson:
Now, I got to be honest with you guys. I didn't follow this one. I got out of debt all by myself. I didn't have a coach, I didn't have an accountability group, I didn't have a Debt-Free Dad podcast, I can tell you that much. I didn't have a community cheering me on, which we are very big on here at Debt-Free Dad. And yeah, I still managed to do it.
Brad Nelson:
But here's the thing it took me way longer than it had to and it was a heck of a lot harder than it needed to be, and that's exactly why Debt Free Dad now exists. That's why Roots of Personal Finance, our community group and our accountability group. That's why this stuff all exists now, because I know firsthand how powerful it is to have that kind of support. In fact, most people come to us. That's what they're looking for. I need accountability and support. They want to be surrounded by people who get it, who are on the same journey and who can keep them motivated when things get tough. So remember that highly effective debt payers. They don't isolate themselves, they plug themselves into something bigger. They get that encouragement, they ask questions and ultimately, they stay accountable to their goals. So you might think you can go faster alone, but if you want to go really far, you got to go together.
Brad Nelson:
All right, quick recap. Here's a rapid fire list of these seven habits again. So, number one track your spending. Number two stick to a real budget. Number three stop using credit cards and debt. Number four is build a small emergency fund. Number five is don't let setbacks stop you. Number six celebrate those wins. And last but not least, the most important one guys, don't do it alone. Start with just one today. You don't need to fix everything overnight. Build these habits, work on these habits, and the results I promise you guys they're going to come.
Brad Nelson:
Now, if you're ready to stop spinning your wheels and actually start making progress the kind that lasts, like we talked about here today I want to invite you to jump on our wait list for Roots of Personal Finance. Now, roots is a closed membership, meaning we only open it up a few times a year and we let new members in. Roots is our step-by-step membership program. It's where I teach you everything that I use to get out of debt and stay debt-free now for over 12 years. It's also what's helped thousands of people that have gone through this program save and pay off debt, reduce stress and finally really get the control that they want when it comes to their finances.
Brad Nelson:
Now again, the doors only open a few times a year and when you join the wait list, you're gonna be the first to know when that enrollment opens and you're also gonna get some access to some great bonuses and huge savings on your membership. So all you gotta do is head over to debtfreedeadcom, click on the wait list to join. Otherwise you can also click the link in the top of the show notes. Hey, thanks for joining us today. Remember, you don't need to be perfect, you just need to keep showing up and doing the next right thing. You've got this and we're going to catch you guys on an upcoming episode.
