Society (along with some friends and even parents) has conditioned us to satisfy our desirse and buy things that we cannot afford. The land of the “Free” doesn’t teach us to be “Financially “Free” – It teaches us to be “Financially Trapped” in debt! For instance, if we can’t afford a new wardrobe, that luxury car or that international trip we always wanted to take – just use our credit card or our savings to get it. Then, when the engine needs to be replaced in our car or our roof has a leak, we find ourselves using our credit card again, borrowing from parents, or getting a personal loan.
Well, now it time to buy groceries, pay bills, and put gas in the car but we have no money, so we pull out the credit card (the other credit card this time). College Homecoming as rolled around and friends come in town and need a place to stay. We have no extra money at this time, but we are too “proud” to tell our friends this is not a good time, financially. We need cash to hang out for the weekend, so we pull more money out of our savings account. We don’t like how the guest room looks, so we use our credit card to buy a new comforter (which goes unnoticed anyway). And we need extra groceries and beverages in the house because we want to be the “Hostess with the Mostess” and offer refreshments and dinner for them when they arrive.
Three weeks have passed and we open that credit card statement and fall to the floor! We did not keep track of our spending along the way (of course) and could not believe that we spent over $3,000 in a month!! (Keep in mind that this statement balance doesn’t include the other $400 you spent to impress your friends). We now have to use most of our paycheck to get this credit card balance down. But, we need gas and food for the next two weeks to get by until we get paid again – SO WE PULL OUT THE CREDIT CARDS AGAIN!!!
By doing this over and over again, we are slowly sinking and soon drowning in thousands of dollars in debt!! It’s time to change that mindset.
Here are steps towards financial freedom and stay out of uneccessary debt:
- Create An Emergency Fund (AND DO NOT TOUCH IT UNLESS IT’S A TRUE EMERGENCY!!)
- Pay off Past Due Bills Immediately (This could negatively affect your credit score and could hender you from buying property in the future)
- Adjust Your Spending Habits (needs vs wants – stick to a set amount of spending each month outside of your fixed expenses)
- Increase Your Savings (Save that extra money that you would have normally spent on coffee, clothes, eating out, etc…)
- Start Investing (401ks, IRAs, money market accounting, stock trading, real estate, etc… )
- Create a Legacy for Your Family – (Start putting money away for your kids college, purchase a home and add extra money to your retirement plan. You will bebuilding a legacy – something you can pass onto your family)
LIFE IS TOO SHORT – YOU DESERVE TO BE FINANCIALLY FREE AND LIVE IN PEACE – NOT IN FINANCIAL DISTRESS!