Get Off The Zombie Trail and Save Your Money = FREEDOM
They live on 35K a year and have no debt…How? Listen.
Saving Money & Making what you’re worth
For most of our lives our parents have told us about the need to save money. Even though this is great advice, many people today including many parents seem to struggle with putting this advice into practice.
Why don’t we save?
It’s really no surprise because the ‘now’ culture is constantly telling us why we need to have that house, car, television, new phone upgrade immediately, and the creditors are more than happy to give us the funds to make that purchase, for a price!
When we buy that beautiful new car, a nice big house with granite kitchen and bath tops, stainless steel appliances,and wood flooring; the latest and coolest electronics gives many of us the feeling of euphoria- but think about it, in the end if we are borrowing money to afford these things, many of us will be working to pay off these debts for a lifetime. In fact this debt is with many of us until death.
So what should we do?
The question I encourage you to ask is; what is the financial benefit to long term unending debt?
The short answer is, in most cases it is not good, it generally means paying higher rates of interest, and prohibits good savings habits.
Evidence of this is all around us. Consider the many retirees that are still paying a mortgage at retirement with only their social security check. Many have little or no savings to live on. Add to this a car note, needed medications and other living expenses and you have a perfect storm for financial hardships.
For these reasons we must make a choice: Life or Debt, which will you choose?
Remember that a borrower is a slave to the lender and that until you are out of debt you will have no other choice but to continue working or accept a lower standard of living.
There is a better and smart way to save and achieve financial stability. The key is to remember that financial decisions that you make while you are young can have a lifelong impact.
It is important to know that all debt is not bad.
In fact certain debt is good. For example, acquiring debt to purchase your home. You are purchasing an asset that as you pay it builds equity, however if you choose to rent, that money goes into the hands of the landlord and you build no equity in that property.
Once you have purchased a home or taken on other “good” debt, you will want to work to pay it down quickly and then save money. The reason- the faster the debt is paid off, you pay less interest, which allows you to put that interest in your savings to benefit you, NOT the bank.
Debt Freedom is a Beautiful Thing.
Once your debt is paid, you are no longer a slave to the lender. That is why paying your mortgage in full before retirement is a beautiful thing. It allows you to live more freely with more money in your pocket during retirement without your income being eaten away by long term debt.
So, why do so many people not save money anymore? There are a variety of reasons. The recession of 2008 disrupted many people’s financial plans. Many lost their jobs, and even for many that did not lose their jobs, homes were lost or the value of the homes vanished . Additionally wages have not increased, which has added to the problem. For these reasons it is imperative that you make smart decisions to sure up and protect your financial future.
Today it is so easy to get careless with your money. For example, it really is easy to pull through the drive-through at a Starbucks and hand the Visa card for a morning cup of coffee.This is a daily habit, that can become extremely expensive. Therefore you should remember to think twice before you swipe. Whenever you make a purchase you need to ask yourself the following question:
Financial dependence or independence; which feels best?
Remember it is your responsibility to take care of you!
Get off the ZOMBIE Trail – think and live!