A few years ago I was having a casual conversation with some co-workers and I mentioned that paying off debt would be the best financial decision they ever made. Another co-worker spins around in his chair and says “you can’t get out of debt, debt is apart of life. A few years after I got the opportunity to sit with the USN (navy) for a financial certification course. Our icebreaker was a financial bingo and one of the questions was “Who is debt free” I was the only person in the class that could check that box. This was a week long course that excused us from work so, you’d expect these to be the most financially astute. I mean they were selected to be certified as financial specialist.
If you want to be wealthy you HAVE to eliminate debt. you can look to those who “had it all” and see that its such a huge burden. Mike Tyson is one of many examples that comes to mind. He’s reported to have made $400 million over his 20yr career (thats $20 million a year). Dave Ramsey puts it like this “Stop buying thing you don’t need to impress people you don’t know”.
The truth is – it’s pretty simple, but it’s not easy. When i tell people that they tend to look at me kinda funny, so let me explain.
dont lie!
simple right, but not that easy
save more than you spend!
Another simple message that often seems more difficult than it should. I find when talking to people that it is the discipline that makes it so tough. Not only that but you add in the fact that we are marketed to constantly and buying that new phone, shoe, laptop or car seems like the smart thing to do. And if you can pay for it later, well that’s even better. And your credit card company is counting on you paying for it later. The money that you are paying to the bank is money that you aren’t paying to yourself. It may feel like not such a big deal, but the something happens psychologically and we begin to get use to debt like the people I spoke about earlier. Then we wake up 10…15…20 years down the road and we are still stuck not knowing how to get out of the mess that was created. Then worst of all hope is lost. I have seen this too often.
What I have also seen is the look in someone’s eye when you show them there is a way out. A way not just to manage their money, but to own their financial future. It’s an instant glow in their eyes when they know they are not alone and the situation can be turned around. Its very simple most of the time, but its not easy. You want to take the steps to eliminating your debt ASAP. You may or may not realize it, but it is keeping you away from your dreams! According to CNBC the average american has about $38K in debt – not including the morgage! The money you are paying someone else would be able to go to preparing yourself to reach your dreams.
I can say that being debt free makes it very easy for me to enjoy life. Aside from my recurring utility and food bills I have the luxury of worrying about very little when it comes to money and it starts with having no debt. When you don’t owe anyone there is a piece of mind that you feel. Just thinking about it can make you feel better, so you know achieving debt freedom will be amazing. It’s said that money is the root of all evil, but maybe it’s debt that’s the root of all evil. Maybe that’s a bit dramatic, but how often do you have to deny yourself things because you have to “pay on” something else you “bought” earlier? Or have you had to tell a loved one you weren’t able to go somewhere because you didnt have the money? Debt IS holding you back from doing those things, and if it’s not then you are likely getting deeper and deeper in to the hole.