Debt Free Living – Unlocking Your Potential

September 17, 2009 | Posted by Brad Chaffee

Have you ever put much thought into debt free living?  Having actually just become debt free myself, I am probably more passionate about this subject, than any other.  I have seen first hand the benefits of living without using debt as a tool.  The myth that is responsible for the current financial mindset says that we cannot have certain things without going into debt to get them.  This could not be further from the truth.

Why do I hate debt so very much?  I am so glad you asked.  There are many reasons for my hatred, but here is the basis for it.

“If your paycheck is going toward paying all these credit card companies off, you can’t get very far. You certainly can’t use your income as a wealth-building tool — which is what it becomes when you don’t have all these debt payments.” - Brad Chaffee – Enemy of Debt

When I was interviewed for this article, we were specifically talking about credit cards, but I consider all debt to be a hindrance.  No matter what your opinion is about good debt and bad debt, I think we can agree that it is always better when you DO NOT owe someone else money.  Money that you have, and do not owe someone else, can be used to improve your financial situation.

Without debt you can:

• save more
• invest more
• give more

Here’s an exercise you can do to find out how much more money you would have to do these things, if you didn’t have debt.  I call it the “Dream Budget“.  The idea is to do a budget, using your current income, without including ANY debt in your monthly expenses.  It allows you to see clearly—your potential to grow financially.

Debt free living is about learning to plan and prepare for what you want, as opposed to running out and buying stuff you really can’t afford.  Debt free living is a mindset.  You must be able to wrap your brain around the possibility that you can have anything you want, without going into debt to get it.

For some that is a hard pill to swallow, but it is not because it is not possible, it is because people are not willing to plan and execute.  Sadly, instant gratification has become a bigger priority than saving.  I’ll leave you with this final thought.  There are no shortcuts to anything worth having.

Brad Chaffee is the Enemy of Debt, and a regular contributor here at the Self Reliance Exchange. Learn more about Brad by reading his bio. You may also contact him here.

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Categories: personal finance | Tags: credit cards, debt, debt free living, self reliance | No Comments »