- Being debt free sets an excellent example for your kids.
- It could save your marriage (most marriages break up over financial difficulties).
- Instead of paying interest/late fees/over limit fees and keeping the credit industry afloat, you will be earning interest.
- Take your monthly income and subtract everything you pay each month except debts (ie: phone bill, cable bill, gas bill, food, etc). See that big total left? If you were debt free that money would be all yours. What could you do with that amount of money?
- If you are drowning in debt, you have neither the money nor emotional focus to put towards preparedness...and preparedness is IMPORTANT!
- You will go to work with a whole new attitude (when you are in debt you need to work; when you are not in debt you go to work because you want to).
- If you are debt free, unexpected expenses (a new roof, kids braces) can be easily paid for. If you are in debt these types of events can become a major crisis.
- You have more freedom to be yourself. If you are in debt, you are always trying to keep your life from crashing down around you. When you are debt free, you don't have to meet any one's expectations; you can be and do what you want.
- Life has more possibilities. Want to take a one year sabbatical in India? No problem, debts won't hold you back. Want to cut your work hours and work on the great American novel? No problem, you have very few expenses to meet so need to work very few hours.
- There is no better feeling than walking into a car dealership and paying cash for a car.
- You will make better decisions. You have the goal easily in mind: remain debt free. When you are approached by a credit card offer/timeshare offer/great business offer, your goal to remain debt free will keep you from falling for these scams.
- You will actually be able to provide for your family. If you are in debt, any extras for the kids (clothes, college, tech gear, sometimes even lunch money) is a struggle. If you are debt free, you can easily provide for the needs, and some pretty nice "wants" for the family.
- You will walk taller, look better, and sound better. People who are run down by debt actually look and sound run down--the stress shows in their body, their face, and their voice. Debt free people don't look like that.
- You will be able to retire. People with a lot of debt are seldom able to actually retire. They need to keep working to supplement their meager Social Security income. With lots of money invested and no debts, you will be able to retire whenever and where ever you want.
- You will be an inspiration to others. They will see how well you are doing and be inspired to change their lives as well.
- If there is a sudden run on rice/flour/firearms/etc. you will easily have the cash on hand to be first in line to purchase these items (and have the spare cash to purchase more than you need so that you can sell or barter the items if the time comes to do that).
- You will be able to afford the better things in life. You can easily purchase life changing experiences, educational opportunities, top notch consumer goods, the best medical care, etc.
- It gets rid of all sorts of nasty financial hazards: repossessions, foreclosures, bankruptcies, adjustable interest rates, etc. You won't be in the position of losing your house because you will own it outright. You won't have to worry about rising interest rates because you won't be paying interest on anything.
- You can easily flee a dangerous area. Look at how many people were stranded in New Orleans when Hurricane Katrina hit; they couldn't afford to leave.
- It will be an accomplishment that many families haven't seen for the last few generations.
- Think of how it will feel to carry hundreds in actual cash in your wallet which belongs to you and isn't on its way to the bank to pay for a debt.
- You will be able to give. There is no better feeling than being able to help out people in need, to tithe to the church, and to donate your time and money to the causes that mean the most to you.
- You will help stabilize the economy. Building an economy on credit means that people have to keep earning enough money and spending to keep the economy growing. When there is any sort of glitch in this system the economy can tank-- like it is doing now.
- You can control your taxes. If you are continually building debt you need to earn more to pay the debt thus being taxed more. With no debt and lowered or sheltered earnings you can cut your taxes sometimes dramatically.
- You will have more confidence and self esteem than you've probably had in a long while. Taking control of your situation then being in control of your life does wonders for how you feel about yourself.
Saturday, May 3, 2008
25 Reasons to Become Debt Free As Soon As Possible
Everyone knows that being debt free is a good idea but in case you need some more compelling reasons to pay off everything (credit cards, loans, cars, and house) as quickly as possible...you need to be debt free because: