Debt Freedom With One Simple Rule

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If you want to get free from debt, there’s one simple rule you’ll have to stick to – and that is to spend less than you earn. That’s it! Now this may sound like the most obvious thing in the world, but it comes as a surprise to many people. You read so much these days about seemingly easy ways out of debt, but the truth is there aren’t any.

Going “chapter 11” in any way has its distinct drawbacks whilst anything – anything at all – you ever read that suggests making money is easy, or getting out of debt is easy, is simply not to be believed.

The only ways out of debt are through a legal bankruptcy process that you really don’t want to embark on if you can possibly help it, or by sheer good fortune, or by selling assets if you have any to sell – or by steadily spending less than you earn including all interest payments on personal loans, for example, and other outgoings of any kind whatsoever. And for most of us, the latter option is the only realistic one.

So this calls for a reality check. You need to budget everything you spend each month, then build in a little wiggle room for unforeseen eventualities – then make sure you stay within that budget.

And you need to be realistic about it, too. This means documenting and recording everything you spend money on, even the pennies here and there. You then need to make sure you live beneath your means until your debt is cleared and you start to move towards a position where your capital is actually contributing to your livelihood rather than taking away from it – through interest payments or dividends etc. It’s a step by step approach and it usually takes a long time, depending on the level of debt you’re already in before you start, of course.

Anyone who suggests this is anything other than a hard slog is very probably being less than truthful. But the good news is that it can be fun, in a strange sort of way, as you begin to play it like a game and maybe even become a little obsessed by it all in a financially healthy way.

Good luck! 


  1. If only one could master that. Spending within your means – there would be no debt!

  2. i think that many folks are programmed by society from the day they are born NOT to live this way.. which is the sad reality..
    jefferson @SeeDebtRun recently posted..Shortcuts to Financial FreedomMy Profile

  3. Lifestyle inflation took us down and we forgot that rule of spend less that you make. We have been on the right track for a while now, and I can’t imagine going back to our old ways. I am obsessed now with getting out of debt and building wealth, which is much healthier.
    Kim@Eyesonthedollar recently posted..Can Money Management Help In Any Way With Debt Consolidation?My Profile

  4. “Spend less than you earn!”

    If you can master that, then you will be better off financially at any income level!!!

    Good post!
    Holly@ClubThrifty recently posted..What I Want My Kids to Know About MoneyMy Profile

  5. I bet you if you asked, the majority, would say that they spend less than they make. Then if you actually tracked what they spent weekly you would find on average they spent more than they made. I would be surprised if this is not true.

  6. thanks for enlighten us, really important information.
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