Debt Dunk

There are many people who have been burned financially and still never learn from their mistakes. Credit card companies are not your friends no matter how nice they are. These people do not lend you money just because they like you. It is not an act of kindness. You will pay and pay and pay! Why then do people repeat the same money mistakes over and over? The answer is, somewhere along the line, you were taught stupid people tricks.

Society teaches us that if we want something, first we have to borrow money. If we ever want to be a success, we have to establish our credit. Even people who have gone the ultimate financial crisis, bankruptcy, start right away thinking of ways to rebuild their credit. Believe it or not, there are people who do not use credit. Take a moment and sit down, because yes, there are debt free and cash paying people in the world.

Remember the stupid tricks you have seen people teach their dog? I have seen dogs do just about anything to please their master and get a small treat. Well, I hate to be the one to break it to you but you are like a dog being trained by a society that believes you can not live without going into debt. It is the number one stupid people trick taught to most people as they grow up. If you want to get out and stay out of debt, you need to be reprogrammed. Debt is not a way of life, it is a roadblock in the road to freedom.

I know now you are thinking. I need a new car, a new house, or something else. The one and only debt I now see as ever legit is a home mortgage. That debt should only be obtained if and only if you are debt free and you have an emergency fund in place. You also must have at least 20-25% down, take a loan for no more than fifteen years, and pay it off as quickly as possible.

Yes, I want a $300,000 house with all the amenities! It would be great and I would love the feel of inviting people into my home. Now back to reality. I live in an old farm house that at times I feel like calling in the bulldozer. I am planning on someday getting a nicer house but reality is, I can not afford it until I become debt free and have a savings and a good down payment. Am I deprived? No, I live in my house and enjoy what I have. Honestly, we could go out tomorrow and get the new mortgage and worry later how to pay for it. That is what society has taught us. However, I no longer perform that stupid people trick.

Break out of your programing and take control of your own life. You are now the CEO of your personal finances! Bank of America is not your buddy and banks are used to manage your cash not to finance your fancy toys. Be smart and you could find yourself richer than you ever thought possible.

Tags: Debt, freedom, personal finances, Stupid People Tricks

This entry was posted on Friday, January 9th, 2009 at 6:55 pm and is filed under Finances. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.