Image courtesy of HugeDebt.comI paid off all of my debts but my car loan and student loan yesterday.
It’s important to be debt free. In a society where it’s so easy to succumb to credit card debt, sub-prime mortgages, and nothing down financing, you can easily be enslaved by debt.
Yes, I said enslaved. If you are forced to make certain decisions – staying at your current dead end job, not going to school, skipping meals, or buying sub-par food simply because you can’t keep up with your debt payments, then you are a slave to your money.
You owe it to your wife, your kids, and yourself to get out of debt. You may think you can handle it, that you’ll always make enough money to handle the situation, but statistics dictate otherwise. At my job as a sales manager, I’ve recently hired four people who are 15 years older than me. They have tons of experience, but a couple of them have taken a step down in pay simply because that’s where the economy is right now.
I’m not an expert at personal finances, but here’s a list of resources that I have used to get myself out of the hole that I dug for myself, and planned for the future.
Frugal Dad – Lifehacks for the ultra frugal, if you are really strapped for cash and need ways to save some cash, but don’t know where to get started, then visit Frugal Dad. He’s got a ton of great suggestions.
Evaluate your financial situation with David Bach’s book, Smart Couples Finish Rich. (not an affiliate link) Three years ago my wife and I created our own financial plan, and we’ve more or less stuck to it. But for those student loans (I’m consolidating – check out student loan debt consolidation), we’re so close to being debt free now I can taste it. You can also visit his website for tons of useful planning information.
Start planning for your future by getting inspired. I first read Think and Grow Rich when I was a Freshman in college. What an amazing book. There’s a methodology to the way that so many people have become incredibly wealthy. Google has the entire text indexed.
12 comments:
@anonymous – I’m not sure what you’re asking. Is a mortgage debt? Yes. Do I think it’s a good idea to go into debt to buy a home? Perhaps. Most people can’t afford a house without a loan, so a mortgage is necessary.
I think there are three good things to go into debt for: a house, college, and (if you really need it) a car.
WOOOOOHOOOOOO!!!!!
Congratulations! You are so right that debt gets in the way of truly living your life!
Another one that is absolutely fantastic is The Simple Dollar.com. Trent can be a little long-winded, but he is a very good writer and has a lot of original topics.
Getting out of debt and staying out of debt is a core principal in life. Another one is liquidity. Being somewhat liquid goes right along with being out of debt.
Just look at the housing economy in the U.S. It’s in shambles! Real Estate sellers and consumers got too greedy with their mortgages.
One thing I learned a while back is that money saved is more valuable than money earned. I remind myself of this every weekend when I mow my lawn. I’ve been tempted to hire someone to do it for me but the money I save doing it myself can be thought of as tax free earnings. In essence I pay myself each week to mow my own lawn and those earnings are not taxed. Kind of a cool way to think about it.
Here’s a tip for dealing with high gas prices. Invest in oil stocks. It takes $500 to open a Scottrade account and they have lots of information to help you get started.
With oil continuing to soar it’s more than compensated for the difference at the pump.
Thanks for this information.
Student Loan+Girl in Asia