Is it really possible to be debt free and live debt free? I can say YES, YES, YES!
Why am I so sure? Because I was deeply in debt on three different occasions and finally made a decision to stop living in debt. It was not easy. I never thought I could be out of debt. But I have done it and you can to.
Our economic system is geared on spending and all the advertising we see and hear is focused on getting our hard earned dollars. We should all be thinking of saving and not spending.
You can save on everything and I mean everything. Why buy a new car, it’s really a waste, as you can get a good second hand vehicle, 2-3 years old with low miles, at almost half the price of the new model. Do you really need to impress your family or friends?
A major mistake that most people make is to buy a home that they cannot really afford but that the bank says they are able to afford based on the monthly payments. A home is not an asset, as it is costing you money every day. The upkeep of your home can be more than your monthly mortgage payment if you factor in taxes, utilities, insurance, lawn care, water and sewer, cable T.V, Internet access, etc.
An asset is something that is producing income for you ; not taking money out of your pocket. Yes, the pundits tell you your home is appreciating in value and you can sell at a huge profit. Not in today’s economy. Even if this where so, the increasing value of your home is also increasing the taxes you will pay on it and the insurance costs.
I saw an ad in the paper indicating that if you where making $60,000/yr, you could afford a mortgage payment of $1,400/mo. Are they nuts!
Learn to live well below your means. You will experience less stress and you will realize that you can do without all of the new must have items being shoved in your face.
Be happy. Live debt free!
Jacques
CreatingWealthThatLasts
1 comment:
Great post! This reminded me of the book "Rich Dad Poor Dad". In the book it talked about buying asset not liability.
Thank You,
Giovanna Garcia
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