9 Reasons to Live Debt Free

Marcus Foot By Marcus Foot, 26th May 2014 | Follow this author | RSS Feed | Short URL http://nut.bz/34z-sl2g/
Posted in Wikinut>Money>Debt

There are many reasons to be debt free, but here are what I consider to be some of the most important and inspiring.

1. Better Relationships

Life is full of obstacles and challenges, from the day-to-day grind of work, to staying healthy and providing for ones family. All these things can put a strain on any relationship, be it with your spouse, children, family or wider circle of friends and acquaintances. If you add debt into the equation things become significantly more difficult.

Debt has an insidious way of permeating your whole life. Often you wake up in the morning and the first though may be “How am I going to make the car payment this month?". Then your whole day can seem one struggle after the other and often those near you will also be affected by your mood. Leading, in the worst case, conflict and even a break-down of those relationships.

Imagine how much better your relationships would be if you NEVER had to worry about making your car/credit card/mortgage/loan payments every month.

Wouldn’t it feel WONDERFUL not to have that burden every month?

Debt Free Living can restore harmony to your relationships with those close to you.

Believe me I know!

How do you think debt might be effecting your relationships?

2. Freedom to Choose

When you are debt free, the money that you make is your own. Okay, so the taxman wants his share, but all things being equal, you can spend your money how you choose.
What you are not doing is paying interest to corporations which frankly would not notice if you did or not. Don’t get me wrong, businesses need to make money, but I choose to let them use somebody else’s money and hard work, not mine.

What I choose to do with my money is not to work a nine to five job, spend quality time with my wife and dogs and enjoy a full social life with my friends and neighbours.

How would your spending change if a large chunk of your income was freed from servicing your debt?

Would you choose to live any differently if you were debt free?

3. Earn Interest Instead of Paying It

I find that when I talk to people about finance, the often lose interest, look bored and try to change the subject. However, there is a reason it is called “interest”, because once you understand a little about how money and numbers work, I defy anybody not to become very interested indeed.

Here are some facts about compound interest –

If you have a 25 year mortgage at 5% and double the repayments every month you will repay the mortgage over 16 years earlier, saving over $50,000 in interest on a $100,000 loan.

Then invest your monthly mortgage payment (which in this case is $590) in a savings plan paying 2.5% interest for the remaining 16 years. At the end you will have savings of over $139,000. Of that over $20,000 is interest earned, money working for you instead of the other way around!

When you are debt free your money can work for YOU while you sleep – soundly – not for the corporations. I call it a “get rich slow” scheme.

4. Save for Retirement

Many people spend their whole working lives working to save for retirement and pay their debts before they finish work. Then they finally retire and find that they have all the time in the world, but less spare money than when they were working!

If you consider the examples I showed above and took out your mortgage at, say 25 years old, by the time you are 50 you will have leveraged your initial mortgage $100,000 mortgage debt into $139,000 savings, AND you own your house.

Or, to put it another way, the $590 per month you saved for 16 years can then be withdrawn from your savings every month for almost 20 years!

If you free yourself from debt at a young enough age and use those payments to save for your retirement you can either retire earlier, or have a much higher income if you continue working.

What would you do, retire early or work longer and take higher retirement income?

5. Less Stress and Improved Health

These days medical science has pretty much confirmed the relationship between stress and literally dozens of health problems.

These include:

Headache
Muscle tension or pain
Fatigue
Change in sex drive
Digestive disorders
Sleep problems
Heart disease
Auto-immune diseases

For many people the stress of finding money to pay their debts is effecting their health, so I believe debt free living is a major contributor to good health.

How do you think stress is affecting your health?

6. More Freedom to Contribute and Give

I want to take a few moments to stop talking about money. Life is about so much more than money, and in our neighbourhood I see that every day.

There are many people who want and do contribute their time to causes dear to their hearts. Some help sick family members or neighbours, others care for and support animal welfare groups, some help the local community by volunteering time and/or skills for schools or shelters.

The more control you have over your own destiny, the more you can have a positive effect on society. Put simply you become a nicer person.

How would you contribute to your community if you had more spare time/money?

7. You are Motivated to Make More Income

It is a quirk of human nature that we often strive for more. This, in my opinion, is a good thing, since our quest for knowledge has led to all our greatest discoveries. We all want to improve our own and our family’s lives. I imagine that is why you are reading this right now.

The temptation in today’s society is to get a “quick fix” through credit – which is really debt. We are then trapped in a circle where we make just enough money to live and pay our debts. If we make more money it is often swallowed up by our debts and we never seem to move forward.

Through being debt free there is a direct connection between how hard you work and the results you see. It really is a “Carrot and Stick” scenario, where debt is the stick that beats you to work, and being debt free the carrot is that you get to keep the results of your hard work.
How would you prefer to live, under the threat of the stick or taking a bite out of the juicy carrot?

8. More Money to Spend on Yourself

This really just follows on from the previous section. If you are debt free the money you make you can spend on yourself and your family.

How would you spend that money?

9. Free Up Your Thoughts

We all have the same basic needs to survive – a roof over our heads, clothes on our backs, food and clean water, access to healthcare when we are sick, an education for our children if we have them and some form of intellectual stimulation and interaction with other people.

Beyond our needs we have our wants, these are the materialistic things – I won’t name them because they are different for everybody.

Once our needs and wants are fulfilled we move on to the more ephemeral things in life. What do I mean by this?

Let me explain it this way, I had always thought I would one day write a novel, and a couple of years ago I started it. My wants and needs were taken care of, I was content and looking within myself to discover some of my unfulfilled dreams.

Another way to explain it is that you can release your inner child. If you always wanted to be a landscape artist, when you are debt free and in control of your destiny you will find it possible to pursue your dream.

Maybe you always wanted to travel, or study some new subject that you never had a chance to learn at school or college, or try out a new hobby or sport.
When your mind is not pre-occupied with the drudge of surviving it can spread its wings and take you to previously unimagined places.

What have you always wanted to do but not quite got around to doing?

Hopefully I have inspired you to start on the path to debt free living. If you want to find more inspiration, hints on achieving debt free living and more, please check out my website HERE.

Tags

Debt Free, Debt Free Living, Live Debt Free, Living Debt Free

Meet the author

author avatar Marcus Foot
Expat party host & part-time author living in the Caribbean.
I publish my short stories & other fiction at smashwords.com & why not visit my website debtfreeliving.siterubix.com

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Comments

author avatar snerfu
26th May 2014 (#)

Great article. Hope your artist in you blossoms and grows.

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author avatar Marcus Foot
26th May 2014 (#)

Thank you for your kind comment.

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author avatar Randhir Bechoo
26th May 2014 (#)

Interesting article.Thanks for the share.

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author avatar Marcus Foot
26th May 2014 (#)

You are welcome :-)

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author avatar Phyl Campbell
27th May 2014 (#)

I don't think anyone would disagree. I don't think people choose to be in debt, and certainly don't realize they are making a choice -- as an outsider might see it. Still, if people need reasons to motivate themselves to escape debt, they would find them in your article.

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author avatar Marcus Foot
27th May 2014 (#)

Thanks Phil, that was the intention of the article.

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author avatar Retired
27th May 2014 (#)

Nice article with lots of advice

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author avatar Marcus Foot
27th May 2014 (#)

Thanks Wiki19876

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author avatar Fern Mc Costigan
27th May 2014 (#)

Interesting post full of a lot of information, thanks for sharing!

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author avatar Marcus Foot
27th May 2014 (#)

Glad you found it useful Fern

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author avatar Feisty
27th May 2014 (#)

Debt is truly an ugly thing and as you so aptly pointed out, can permeate your thoughts, lessening happiness and serenity.

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author avatar Marcus Foot
27th May 2014 (#)

I am glad you agree Feisty, I should know - I speak from experience!

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author avatar Retired
11th Jun 2014 (#)

Great advise for living debt free. It is unfortunate that so many fall into the pit of credit card debt and once you go into the debt slide it is hard to come out of it.

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author avatar Marcus Foot
12th Jun 2014 (#)

It is hard carolford, but it can be done through dedication & some lateral thinking!

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author avatar Pollyal
14th Jun 2014 (#)

Most people have no choice while taking a debt...but as you said it really has a insidious way of permeating our whole lives..the points you put together are very valid, the faster one comes out of debt the better for them

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author avatar Marcus Foot
14th Jun 2014 (#)

Thank you Pollyal.
Debt is a scourge on Society!

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author avatar vickylass
14th Jul 2014 (#)

This is actually a rebel stance, because banks and financial markets want us as indebted as we can be, so, we'll never be free from them and by being indebted we're also contributing to fill in their already full pockets. Good one! Thanks for sharing.

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author avatar Retired
25th Oct 2014 (#)

Great article with some very truthful points.

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