Eight Key Characteristics of the Financially Free Individuals

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For most people, financial freedom is one elusive goal. In fact, statistics show that more and more people are getting stuck on debts with high interest rates each year.

So why are some people able to manage their finances well while others continually struggle to control theirs? This is one question many of us have asked at some point in our lives. There’s really no secret to how the financially-free manages their finances.


The differences are on the key traits and characteristics those who are debt-free have which include the following:

  1. Goal-Oriented – Those who are in control of their finances are goal-oriented. They know what they want and they come after it like there’s nothing more important in the world. Some of them were also stuck on debt but because one of their goals is to be debt-free, they changed their lifestyle and worked hard to achieve that goal. Start with a goal and orient your lifestyle towards the fulfillment of that goal.
  2. Detail-Oriented – Financially free individuals are also detail-oriented. They pay attention to their finances especially their income and expenses. They know the exact amount of money that’s coming in and they track their expenses up to the last cent. They also make a budget and stick it which is how they steer clear from purchases that they can’t afford.
  3. Responsible – Getting out of debt is a difficult feat fraught with challenges. But what will make you stick with the plan to repay your debts is a sense of responsibility. This is one trait that all financially free people have. Because they are responsible and mature enough, they know that the only way to live life is to get rid of debt and they do it as fast as they can too.Debt-free
  4. Patient – Getting rid of debt and achieving financial freedom do not happen overnight. If debt was acquired through the years, the process of getting out may take even longer. One trait that sets the financially-free from those who are struggling is patience. Debt-free people know how to wait for the right time and they rarely if never indulge in impulsive purchases.
  5. Practical – In addition to being patient, debt-free individuals are also very pragmatic. They are not materialistic. Rather than buy something because it’s the current trend, they focus on value. A financially-free person, for example, wouldn’t buy a brand new car even if he or she wants to. They’d rather settle for a quality secondhand car because it’s more practical.
  6. Self-reliant – To be financially free also means that you need to learn the art of self-reliance. You don’t rely on other people to bail you out. Those who are debt-free take responsibility of their decisions in life which is why they are careful with the way they live. They don’t go on a shopping spree. Instead, they have developed critical habits such as living within their means and saving for the future.
  7. Confident – Those who are living a debt-free lifestyle have high self-esteem. They are confident that when they set a goal, they have the ability to achieve said goal. Rather than keep up with the Joneses, financially free individuals understand that life is all about living in confidence and not by pleasing other people by displaying wealth you don’t have.
  8. Sacrificial – Paying off debt takes time and dedication. Most of the time, you’ll also need to make sacrifices. Knowing when to make sacrifices is another characteristic financially free people have that those who are struggling cannot manage. People who are debt-free understand that budget cuts or sacrifices are only temporary.

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