To be able to enjoy living a debt free life there are some basic requirements that need to be followed. The first step is to rid yourself of credit, credit is so easy to obtain that it will quickly overtake you without even knowing it. Pay your bills and live off the left over cash. It is wise to resist the temptation to use credit cards when you are strapped for cash. Another important step is to examine your expenses and outline a budget that reasonable for you. Take your total income for the month and subtract all the payments you will have to make each month. It is a wise choice to put aside some money for a savings account and what is left over divide into the number of weeks. After you have done this, you will have a look at what you budget should be. Make your money work for you, invest in IRA, 401 K or an money market account, this will provide you interest bearing accounts and help you prepare for retirement when the time comes.