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.
Tweet ThisWill you join me and motivate me by improving financial efficiency today?
Lets discuss the Never Trade Freedom for Debt and how you will have freedom soon?
Rich Uncle EL
Taking on debt is a quick fix, the new car or the week long vacation is great in the moment, but the debt stays with you far longer then the new car smell or the ocean front view. Once you make the mind shift you can achieve anything you want by saving first and enjoying later.
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I agree it is a devastating cycle. I think having debt freedom is the way to live. Thanks for stopping by Brian.
Thanks for the props EL! I absolutely love being completely debt free. It truly is amazing how quickly money piles up when there aren't any payments to make. My wish for everyone is for them to experience this debt freedom. It truly is a fantastic feeling. Get debt free ASAP! You won't regret it.
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Cool Derek thanks for motivating me, I’m working on it and you’ll be 1 of the first people to know. It was fun reading the debt free post. Thanks for commenting.
The principle is a good one. I hope to life by the principle the rest of my life. For now, we succeeded. I have found a lot of good reasons on your blog on how to reach that goal. My personal situation had this a main reasons
1- identify your saving rate. At one moment in time mine was negative and I managed to turn it arrow d
2- try to plan for big expenses. An example: we save money upfront for a new car via our mid term expenses fund. this way, we hope to get around without loans.
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Good points Amber and it takes great effort to find a debt free life, and financial success will soon follow. Good luck.
I’m all in! I think the other 10,000 financial bloggers are the same. We want to help our families understand most of all, but if others want to listen in too that’s great. Debt will hold you back and chain you down. Get away from it. Living free of debt will be such a blessing in your life!
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Cool yes welcome to the blogger club. By drawing a line in the sand and don't borrow again will help anyone avoid the horrible debt cycle. Thanks for stopping by Jordan.
My recent post Never Trade Freedom for Debt