Have you ever felt like you’re stuck in a rat race? Like no matter how much you do or how hard you work, you’ll never be completely free from financial obligations. Just as quickly as money comes into your account, it goes out to bills, living expenses, and debt payments.
Adopting a debt-free lifestyle could be your way out. While a debt-free lifestyle often requires sacrifices, the payoff is that you’ll be able to stop living paycheque to paycheque.
Below, I’ll outline some of the enormous benefits of changing your mindset towards money and adopting a new debt-free lifestyle.
A couple hundred years ago, the idea of a debt-free lifestyle wasn’t radical. It was the norm.
Sure, people may have borrowed a bit of money from a bank or a family member to take care of necessities, but these were usually short-term loans that were quickly paid off.
Lending money was a lot riskier, as it was far easier for said borrower to simply run off and never pay. Loans were typically only given to established community members or those from wealthy families with property that could be used as collateral.
Thanks to the internet and today’s modern interconnected society, though, almost anybody can borrow money or apply for a line of credit.
Canadian consumer debt was reported to be over $2.4 trillion near the end of 2023, according to a report by Equifax.
Consumer debt can include:
Statistics Canada recently reported that the average household in Canada owed $1.79 for every $1 of disposable income they had, indicating an increased reliance on debt to cover living expenses.
Some argue that it’s impossible to live completely debt-free in today’s society, especially with how expensive everything is these days.
To say it can be achieved with nothing less than a drastic re-evaluation of your spending habits would be dishonest. But it can be done, if you're willing to sit down, go through your spending habits with an honest and non-judgmental eye, and commit to making changes.
The reality is that many people live over budget. Do you really need a $1,000 iPhone? You can make phone calls and send texts with a $100 budget smartphone from Walmart. Do you need to spend $20 a day on your credit card to buy coffee and breakfast on your way to work? You could make coffee at home and eat a simple breakfast before you leave.
The question is, are you willing to make sacrifices on your end so that you don’t spend more than what you earn?
Even if you don’t choose to live completely debt-free, reducing your debt and learning to manage your spending habits can benefit you in many ways, including:
I would be willing to bet that almost everybody reading this post has, at one time or another, felt stress in regards to money. This stress is typically caused by the feeling that you don’t have enough money to cover expenses and bills. You’re afraid of what will happen to your credit score if you miss a credit card payment or fall behind on your auto loan.
When you live debt-free, you’ll have fewer financial obligations to worry about, which means that you won’t spend as much time stressing about how you’ll pay your bills on time.
A recent Angus Reid survey revealed that most renters and homeowners wouldn't be able to handle a sudden $1,000 expense due to a lack of a financial cushion or emergency savings.
By adopting a debt-free lifestyle, you’ll have less money flowing out and will be able to save and invest more, allowing you greater financial security and providing you with a better cushion when life throws the unexpected at you.
How many people do you know who hate their jobs but stay in it for the money, which allows them to keep driving a nice car, to keep buying expensive things, and to keep going out to restaurants all the time?
Now how many of those people who came to mind would be far happier in another line of work that might pay less, but would be far more fulfilling? They’re just not willing to sacrifice the extra money (and purchasing power) that comes with the higher-paying job.
One of the quickest ways to improve your credit score is to reduce your debt-to-income ratio. As you pay off your credit cards, personal loans, auto loans, and retail debt, your credit report and score will both improve.
The better your credit score, the less you’ll need to worry about borrowing money for the important things in life, such as buying a house or applying for a small business loan.
Many relationships are absolutely destroyed by stressful money situations. Financial hardship can break a great relationship, as both parties struggle to keep up and may blame each other for their circumstances.
By adopting a more conservative approach to finances and spending less, you and your significant other will be better prepared to weather financial storms when they come.
Perhaps the most underrated benefit of living debt-free is the way it changes your perception of value.
One of the biggest contributors to “bad debt” is our consumer mindset. If something breaks, we just replace it instead of trying to fix it. Because of this, we don’t care as much about what we have and are more likely to waste things.
Sustainability and living debt-free often go hand in hand. Those who aren’t as eager to get into debt by replacing everything are more likely to value and care for what they do have, whether that means taking better care of their electronics or only buying groceries that they’ll eat before expiration.
The transition to a debt-free lifestyle usually isn’t something that happens overnight, unless you win the lottery. For most, it’s a slow transition that starts with prioritizing your debts and paying them off as quickly as possible. This is done in correlation with adopting more responsible spending habits and reducing consumer purchases.
Not sure where to start? Keep reading to see some of the best tips to get out of debt quicker.
Christopher Liew is a CFA Charterholder and former financial advisor. He writes personal finance tips for thousands of daily Canadian readers on his Wealth Awesome website.
Do you have a question, tip or story idea about personal finance? Please email us at dotcom@bellmedia.ca.
Several officers on a task force trying to serve a warrant in a suburban Charlotte, North Carolina, neighborhood were shot Monday afternoon and a suspect in the shooting was found dead inside a home, police said.
Toronto police say 12 people are facing a combined 102 charges in connection with an investigation into a major credit fraud scheme.
A Calgary elementary school principal has been charged with possession of child pornography, authorities announced Monday.
The Canada Revenue Agency (CRA) is going to audit Saskatchewan for not paying carbon levies on home heating, Premier Scott Moe said Monday.
One of the winners of a historic US$1.3 billion Powerball jackpot last month is an immigrant from Laos who has had cancer for eight years and had his latest chemotherapy treatment last week.
B.C. Premier David Eby has joined other politicians denouncing remarks at a demonstration in Vancouver where protesters chanted “long live Oct. 7,” praising that day's attacks by Hamas on Israel.
Norovirus is spreading at a 'higher frequency' than expected in Canada, specifically, in Ontario and Alberta, according to the Public Health Agency of Canada.
Moderate drinking was once thought to have benefits for the heart, but better research methods have thrown cold water on that.
NDP Leader Jagmeet Singh says he's still not ready to say whether his caucus will support the federal budget, citing a need for further 'clarity' over whether the Liberals intend to address concerns surrounding the Canada Disability Benefit program.
The Canada Revenue Agency (CRA) is going to audit Saskatchewan for not paying carbon levies on home heating, Premier Scott Moe said Monday.
A Calgary elementary school principal has been charged with possession of child pornography, authorities announced Monday.
McGill University says the growing encampment on its lower field in solidarity with Palestinians in Gaza violates its policies.
Immigration Minister Marc Miller says international students will be able to work off-campus for up to 24 hours per week starting in September.
Pro-Palestinian protesters have established an encampment at the University of British Columbia in Vancouver in solidarity with the people of Gaza amid the ongoing Israel-Hamas war.
For the first time, negotiators from most of the world's nations are discussing the text of what is supposed to become a global treaty to end plastic pollution.
The trial of a Massachusetts woman who allegedly killed her Boston police officer boyfriend by intentionally driving her SUV into him opened Monday.
Uruguay's former guerilla-turned-president, Jose Mujica, widely known as a leftist icon who transformed his small country into one of the most socially liberal in all of Latin America, said Monday that he has esophageal cancer.
Columbia University's president said on Monday that talks with pro-Palestinian protesters over the dismantling of an encampment on the Ivy League campus had failed and urged them to voluntarily disperse or face suspension from school.
The U.S. State Department has determined that five Israeli security units committed gross violations of human rights prior to the outbreak of the war with Hamas in Gaza, but is still deciding whether to restrict military assistance to one of the units under U.S. law.
NATO countries haven't delivered what they promised to Ukraine in time, the alliance's chief said Monday, allowing Russia to press its advantage while Kyiv's depleted forces wait for military supplies to arrive from the U.S. and Europe.
The climate crisis impacts Earth — its land, its atmosphere and its bodies of water — and it also profoundly affects the health and behavior of the planet’s inhabitants large and small, including humanity.
NDP Leader Jagmeet Singh says he's still not ready to say whether his caucus will support the federal budget, citing a need for further 'clarity' over whether the Liberals intend to address concerns surrounding the Canada Disability Benefit program.
Members of Parliament are questioning why Canadian security officials did not inform them that they had been the target of Beijing-linked hackers, after learning from the FBI that the international parliamentary alliance they are a part of was in the crosshairs of the Chinese cyberattack in 2021.
The federal minister for addictions and mental health says it's too early to draw conclusions about drug decriminalization, after British Columbia asked Ottawa to scale back its pilot to help curb concerns over public drug use.
Moderate drinking was once thought to have benefits for the heart, but better research methods have thrown cold water on that.
Tobacco manufacturers have until Tuesday to ensure every king-size cigarette produced for sale in Canada has a health warning printed directly on it.
The number of measles cases around the world nearly doubled from 2022 to 2023, researchers say, presenting a challenge to efforts to achieve and maintain elimination status in many countries.
A northern Ontario beekeeper is sounding the alarm after discovering most of her bees had died earlier this year.
Anyone who has a Gen-Z person in their life is likely familiar with the popular social media app TikTok, but a new bill in the U.S. may soon take it off of the American market.
State-sponsored actors targeted security devices used by governments around the world, according to technology firm Cisco Systems, which said the network devices are coveted intrusion points by spies.
Taylor Swift continues to dominate in the week following the release of her 11th album, "The Tortured Poets Department." The 31-track album has hit No. 1 on the Billboard 200 chart, tying Swift with Jay-Z for second-most No. 1 albums at 14. Only The Beatles, with 19 No. 1 albums, have had more.
Anne Hathaway first shared she lost interest in drinking after a bad hangover in 2018. She’s now five years sober.
French actor Gerard Depardieu will be tried next October for alleged sexual assaults against two women during a 2021 film shoot, the Paris public prosecutor said on Monday.
The majority of Canadians aspiring to buy a home say they will push their plans to next year or later to wait for interest rates to drop, a new survey shows.
For the first time in eight years, Canada imported more electricity from the U.S. than it exported amid prolonged dry conditions that have reduced hydroelectric power generation.
Medical device maker Philips said Monday it will pay US$1.1 billion to settle hundreds of personal injury lawsuits in the U.S. over its defective sleep apnea machines, which have been subject to a massive global recall.
One of the winners of a historic US$1.3 billion Powerball jackpot last month is an immigrant from Laos who has had cancer for eight years and had his latest chemotherapy treatment last week.
A nearly century-old church in one of Vancouver's most desirable neighbourhoods is up for sale.
A gold watch worn by John Jacob Astor IV, a member of the wealthy Astor family and the richest man aboard the Titanic, sold for a record-breaking US$1.485 million at auction on Saturday.
Winnipeg forward Vladislav Namestnikov suffered a fractured cheekbone when a puck hit him on the left side of his face in Game 4 against Colorado, the team said Monday.
Montreal's Felix Auger-Aliassime advanced to the fourth round of the Madrid Open tennis tournament Monday in a walkover after Czech opponent Jakub Mensik retired.
Tributes continue to pour in for Bob Cole as his family has confirmed a funeral will be held for the legendary broadcaster Friday in St. John's, N.L.
Rolls-Royce is vastly expanding its factory in Chichester, England. The BMW subsidiary is adding five new buildings with construction planned to start next year.
On a three-lane test track along the Monongahela River, an 18-wheel tractor-trailer rounded a curve. No one was on board.
An Ontario man who took out a loan to pay for auto repairs said his car was repossessed after he missed two payments.
Since 1932, Montreal's Henri Henri has been filled to the brim with every possible kind of hat, from newsboy caps to feathered fedoras.
Police in Oak Bay, B.C., had to close a stretch of road Sunday to help an elephant seal named Emerson get safely back into the water.
Out of more than 9,000 entries from over 2,000 breweries in 50 countries, a handful of B.C. brews landed on the podium at the World Beer Cup this week.
Raneem, 10, lives with a neurological condition and liver disease and needs Cholbam, a medication, for a longer and healthier life.
The lawyer for a residential school survivor leading a proposed class-action defamation lawsuit against the Catholic Church over residential schools says the court action is a last resort.
Mounties in Nanaimo, B.C., say two late-night revellers are lucky their allegedly drunken antics weren't reported to police after security cameras captured the men trying to steal a heavy sign from a downtown business.
A property tax bill is perplexing a small townhouse community in Fergus, Ont.
When identical twin sisters Kim and Michelle Krezonoski were invited to compete against some of the world’s most elite female runners at last week’s Boston Marathon, they were in disbelief.
The giant stone statues guarding the Lions Gate Bridge have been dressed in custom Vancouver Canucks jerseys as the NHL playoffs get underway.
Pro-Palestinian protesters have established an encampment at the University of British Columbia in Vancouver in solidarity with the people of Gaza amid the ongoing Israel-Hamas war.
A truck driver was apparently following GPS directions when he navigated down a boat launch in B.C.'s Okanagan over the weekend, leaving his semi partially submerged in Osoyoos Lake.
A B.C. government lawyer says court documents in a policing dispute with the City of Surrey contain significant allegations of harassment and bullying by the RCMP that should be kept from public view because they could cause “undue public concern.”
Toronto police say 12 people are facing a combined 102 charges in connection with an investigation into a major credit fraud scheme.
Norovirus is spreading at a 'higher frequency' than expected in Canada, specifically, in Ontario and Alberta, according to the Public Health Agency of Canada.
A Toronto senior says he missed a court date related to his impending eviction because he was recovering from a heart attack in hospital.
A Calgary elementary school principal has been charged with possession of child pornography, authorities announced Monday.
The Alberta government has laid out the path ahead for an ambitious passenger railway system it says 'has incredible potential' for the province.
A new capital gains tax increase, aimed at Canada’s highest earners, is causing frustration for some Albertans with secondary homes or cottages, according to a real estate broker.
The Treasury Board of Canada Secretariat says it is committed to hybrid work but is not commenting on a report that it is set to mandate federal workers into offices three days per week by the fall.
An Ottawa woman says she believes clicking on a fraudulent link led to her entire bank account being compromised, leaving her out thousands of dollars.
Premier Doug Ford announced the province will be opening a new regional office dedicated to Ottawa on Monday.
McGill University says the growing encampment on its lower field in solidarity with Palestinians in Gaza violates its policies.
A police officer on Montreal's South Shore anonymously donated a kidney that wound up drastically changing the life of a schoolteacher living on dialysis.
In a time of push for bigger and better infrastructure, Quebec researchers are working toward an environmentally friendly way to build bridges and construct sidewalks.
The city could be on the hook for the bill to demolish a problem building in the heart of Edmonton.
Construction crews on Monday again began to close Stony Plain Road through the Glenora neighbourhood for Valley Line West LRT work.
Kings head coach Jim Hiller says that despite the loss, his team needs to replicate Game 4's style of play in the return match on Wednesday in Edmonton.
Police have charged a third youth in connection with the death of a teenager in Halifax last week.
A Bedford, N.S., man has been charged with stunting after the RCMP says he was caught driving more than 138 km/h over the posted speed limit.
A high school in Halifax is dismissing students early Monday due to an alleged threat.
The trial of a Winnipeg man accused of killing four women began this morning with a preliminary matter before the jury is called in next week.
A man has been arrested in Saskatchewan for the murder of a Winnipeg resident.
Winnipeg forward Vladislav Namestnikov suffered a fractured cheekbone when a puck hit him on the left side of his face in Game 4 against Colorado, the team said Monday.
The Canada Revenue Agency (CRA) is going to audit Saskatchewan for not paying carbon levies on home heating, Premier Scott Moe said Monday.
A 20-year-old Kindersley man faces multiple charges for impaired driving and failing to stop at the scene of a fatal crash that led to the death of a 21-year-old man in the town west of Saskatoon early Saturday morning.
Several western Canadian organizations representing producers have joined the fray in expressing their concerns over the proposed merger of Regina based Viterra with the Swiss-founded company Bunge.
A man who stabbed an employee at a Cambridge grocery store in 2022 has been sentenced to three years behind bars.
The City of Waterloo is moving forward with a plan to try and rezone 25 acres of city-owned land near RIM Park to allow for affordable and attainable housing.
Ontario Premier Doug Ford says the province's latest attempts to limit cellphone use in classrooms are designed to help students focus on learning.
A 27-year-old Saskatoon man is facing assault charges following a report of intimate partner violence on Saturday.
A 20-year-old Kindersley man faces multiple charges for impaired driving and failing to stop at the scene of a fatal crash that led to the death of a 21-year-old man in the town west of Saskatoon early Saturday morning.
The Canada Revenue Agency (CRA) is going to audit Saskatchewan for not paying carbon levies on home heating, Premier Scott Moe said Monday.
Police in Greater Sudbury have charged a 57-year-old Sudbury suspect with sexual assault in a case that dates back 25 years.
A gruesome discovery was made in a remote wooded area of Greater Sudbury on Sunday night, Sudbury police say.
One person has been taken to hospital with unknown injuries following a collision on Notre Dame Avenue in Sudbury on Monday.
An individual from Cambridge was charged while speeding on Highway 6 in South Bruce Peninsula.
Multiple ceremonies were held Monday to mark the beginning of construction of several new schools and childcare centres across the London region.
The Thames Valley District School Board is still trying to get a handle on the upcoming classroom restrictions being implemented by the province of Ontario.
Search and recovery teams resumed their efforts on Lake St. George in Severn Township to find a missing 30-year-old man who disappeared on Friday afternoon.
County Road 27 is closed due to an ongoing collision investigation.
Police say the Highway 400's northbound lanes are still closed after the crash early Monday.
A 19-year-old motorcycle driver has died after being struck by a car on Sunday evening. Around 8:30 p.m., police responded to the crash in the southbound lanes of Dougall Avenue near the E.C. Row Expressway.
Sentencing has been delayed for a Windsor denturist convicted of sex offences.
Windsor teachers don’t expect much to change as the province bans cellphones in classrooms, with board rules across the region already restricting device use.
Dozens of London Drugs stores across Western Canada remained closed Monday following what the company described as a "cybersecurity incident" over the weekend.
Pro-Palestinian protesters have established an encampment at the University of British Columbia in Vancouver in solidarity with the people of Gaza amid the ongoing Israel-Hamas war.
A nearly century-old church in one of Vancouver's most desirable neighbourhoods is up for sale.
Out of more than 9,000 entries from over 2,000 breweries in 50 countries, a handful of B.C. brews landed on the podium at the World Beer Cup this week.
An emaciated dachshund is now recovering thanks to a Good Samaritan who found the pup near a biking trail in Kelowna, according to the BC SPCA.
Search and rescue crews have been called in after a vehicle belonging to a missing senior was located near a rural intersection outside of Kelowna Tuesday.
Three locations, more than 200 vehicles pulled over – Mounties out of a southern Alberta detachment conducted a check stop operation on Friday night.
The Brooks Bandits got down to business Friday, defeating the Okotoks Oilers 8-2.
An Alberta political scientist said the NDP leadership hopefuls remained fairly even following the first of the party’s debates.
The Smile Cookie campaign kicked off at Tim Hortons locations across northeastern Ontario on Monday.
A first-of-its-kind event aimed at sharpening the skills of volunteer firefighters across the region was held in Iron Bridge on the weekend.
A 28-year-old has been charged following an incident Sunday at a gas station in Sault Ste. Marie.
Tributes continue to pour in for Bob Cole as his family has confirmed a funeral will be held for the legendary broadcaster Friday in St. John's, N.L.
Legendary sportscaster Bob Cole was a Newfoundlander through and through, and his daughter says his connection to the province was 'everything' to him.
Cenovus Energy has been ordered to pay a $2.5-million fine for its role in the largest offshore oil spill ever recorded in Newfoundland and Labrador.
The Shopping Trends team is independent of the journalists at CTV News. We may earn a commission when you use our links to shop. Read about us.
