Hello readers its that time to discuss again the trap that people place themselves in every time they sign a new contract involving debt. When you stop and think about past choices it really is simple, try to do your best to never borrow again unless you want to live indebted forever. Just the other day I read a blog post by Derek over at lifeandmyfinances and he is now living life completely debt free for over a year now. He is an inspiration and an example of a life we all should try to realize 1 day. I believe it’s necessary for my sanity to never trade freedom for debt.
Granted it might feel like a never ending battle in this modern society with a constant emphasis on living with payments and debt. I will tell you that it can be done and to never ever have a defeatist attitude towards your financial insecurities. When you expect failure from the beginning, I guess the path towards reaching prosperity will not be possible. Getting into debt was a choice way back in a moment in time, so why can’t the choice today be made to reverse those bad actions. By not conforming to the norm you will elevate yourself to a term many people don’t use today.(Financially Responsible)
Debt is the real reason to feel that freedom can never be had, but without debt how much freedom will you feel and see in your life? The problem is that most people can’t correlate a simple debt as impeding the ability to live life free of obligations.
Never Trade Freedom for Debt
How Winning with Freedom Looks Like?
A feeling of uneasiness taking on any more debt in the future, because after all these years I have realized that it really is not the right way to live. Financial efficiency is the new in thing right now and it is defined as living life as financially smart as possible.
By paying interest to others you are not living PF smart. Or by gambling on margin, you are definitely not seeing finances in the best light. Also by adding additional monthly burdens it clearly is not a good example of financial knowledge.
In contrast having surplus income every month is considered financial efficiency. Paying yourself 1st by investing consistently rings true and another perfect example. Furthermore having companies pay you interest instead of the opposite is one more illustration. (Can you see the Trend)
The final epitome of never trading freedom for debt is building a steady cash flow of passive and portfolio income sources. Because when you have this it just allows you the time and flexibility to have more freedom. It should continue to grow and if managed right should outpace expenses in the future. In contrast someone earning earned income by working a 9-5 job will never have that freedom.
I know you guys understand the importance of never trading freedom for debt, but are you truly doing something about it besides paying the minimum on all debt? IF you finally realize that by sacrificing a bit today, you can have that freedom only financial unicorns reach like Derek, and I want to reach that status 1 day as well.
Will you join me and motivate me by improving financial efficiency today?