Is it possible to live a debt-free life?

Yes, and one of the easiest ways to living a debt-free life is to live below your means. The practice of living below your means is one of the best and quickest ways of ridding your life from the bondage of debt.

Budgeting

A budget is a great tool that allows you to plan your finances which makes living within your means achievable. Moreover, having a financial plan that helps you manage and arrange your fiances in such a way so you will have money left over when all your bills are paid is very important for your financial future.

Pay Yourself First

Begin by saving five to ten percent in the beginning.  As you go along, develop more ways to cut expenses and stash more in savings or pay work toward paying off a debt faster.

Eat All of Your Meals at Home

Eating out every night can take a huge chunk out of your income. However, one of the easiest ways to living debt free is cooking all of your meals at home. The USDA Center for Nutrition Policy and Promotion creates an annual breakdown of the cost of food for Americans on four levels: Thrifty plan, Low-cost plan, Moderate-plan and Liberal plan. This is provided that all meals and snacks are purchased at stores at regular price and prepared at home.

Borrow Movies

Instead of paying to rent movies at the video store, borrow them from the library. Borrowing movies from the local library is an absolutely free service. If you are unable to find what you want there, request it.

Cut Back or Quit Smoking

If you smoke, cut back or quit. A two pack a day habit could be costing as much as $5,200 a year. Kicking the habit will make you and your bank account much healthier and lessen the risks of medical expenses.

Never Spend a Windfall

If you receive a bonus, income-tax refund, rebate check, or holiday money—place it in some type of savings account or pay off a bill.

Purchase Low Maintenance

Look at the bigger picture for every purchase. Always consider quality, price and maintenance costs. Sometimes, paying a little extra for an item will cost less in maintenance in the future.

Everything is Negotiable

Never be afraid to bargain for a better price or rate on airfares, hotel stays, appliances, vehicles, credit cards, interest rates or anything, anywhere!

Cancel Any Paid Subscriptions

Cancel all magazine subscriptions that are not free. Get the news from places that you already have access such as the Internet, radio or television.

Simplify

Hold a huge garage sale or sell it on an online auction site. If you have not used an item in six months, odds are you can do without it. Donate the items to a local charity if you do not want the hassle of a yard sale, or selling online. It may be tax-deductible and helps others at the same time. This can be a very liberating experience.