While it may remain a dream for most people, a debt free life is not necessarily as impossible to achieve as you may think. A little focus, time, self restraint and organisation are all it takes to become completely free of debt.

So, where do you start? Firstly, set yourself some realistic goals and also an achievable time span to reach your goal. You won’t pay off all your debt tomorrow and maybe not even by the end of the year, so be realistic about your time. Remember that some expenses are ongoing, such as car insurance, home insurance, mortgage repayments or rental payments and so on.

Secondly, identify the areas in which you could save or improve your expenditure, then establish small, short term goals which will help you to develop better money management skills. Of the many practical financial tips out there, one of the best is to begin small – set yourself a budget at the grocery store and don’t over spend, or aim to pay off a little extra on your credit card this month.

Then, move onto bigger goals. Set yourself a time limit to pay off a particular credit card or debt, or aim to save towards an extra month’s rent or mortgage repayment. Count this money as savings for a ‘rainy day’ and only use it for an emergency or for something very important.

Learn the differences between positive and negative spending and rein yourself in when you see yourself about to over spend money unnecessarily. Before you buy any extra item, be it a winter coat or a pint of milk, ask yourself if you could find it cheaper elsewhere or if you are only buying here for convenience? Every little saving counts because even small expenditures eventually add up and eat a large hole in your budget before you know it.

Look around and compare prices on the amounts you have to pay each month. For example, many insurance agencies offer low rates and plenty of people find themselves paying much less on their home or car insurance premiums after switching agencies. The same applies across the board, from clothing to food and even your monthly bills. Switching off the lights and the heat when you leave the house will keep your gas and electricity bills down, leaving you with more money towards paying off your debt.

With a little restraint and some perseverance you could wake up one day completely debt free. It will take hard work and time, but the sooner you get started the sooner you will begin to make a hole in your debt.