Tuesday, January 3, 2012, AM | 1 Comment
Is being debt-free really peace of mind? In a few words, you bet your sweet ass. However, it depends what kind of debt you are talking about. I have mentioned that many times – debt can be good and debt can be bad. Good debt, if managed properly, can be your livelihood whereas bad debt can send you straight to hell on this earth.
If you are losing sleep because you have debt under your belt, then it’s bad, it’s extremely bad. You must do “something” about it whatever it takes. But the freedom that comes with no debt at all has a great feeling, not “answering” to anybody. You live and lead your own life.
Imagine the freedom and peace of mind you would feel with no debt! Imagine the small portion of your paycheck you would need to meet your needs and obligations if all of your earnings were available to you! Think about the savings, investments, and charitable giving you could enjoy!
The safety of your family may depend upon how you handle debt. It has been estimated that 89% of all divorces can be traced to quarrels and accusations over money.
It’s not the amount of money you earn that brings peace of mind as much as it is having control of your money. Money can be an obedient, productive servant, or a brutal master. Don’t be a slave to debt or for that matter money. Be in control.
If you make only the minimum payments on your debts, you will pay them for many years to come. You will pay many times the actual principal you borrowed or rented in the first place.
Go back and think why you are in debt. What were the circumstances? Could you have avoided them? While you are still in debt, could you improve on those circumstances so the debt would no longer pile up?
Is there any way to change your lifestyle and your mindset and try to handle money – credit and debt – differently and to your advantage? If you change your mindset and start developing the habit of saving no matter how small the amount might be, eventually – it takes time – you would have enough that you would be able to get, at least, some necessities of life.
Did you borrow or rent the money to buy furniture, cars, or vacations, instead of waiting and saving and then buying? Distinguish between need and want. Maybe you wanted to keep up with the living standard of your friends or neighbors. Or you frequently make purchases on impulse.
In a Nutshell
If you do research online, you would find different ways and techniques how to get out of debt. Many financial gurus have shed light on this subject. The important thing is, if you are in debt that is out of your control, then you must somehow change your lifestyle and your mindset. No matter how much you read about it, it is you who can change your condition and change for the better.
- Jul 18, 2009: YouTalk 411 » Blog Archive » personal finances » Blog Archive » Is being debt-free really peace …