22 Jan Be different, say NO to debt

So this will be my first real blog post. I have to start with what I’m most passionate about, getting out of debt. I hate debt, if debt had a mother I wouldn’t hesitate to insult her. Debt is binding, constrictive, and painful. It causes loss, divorce, and hardships. For anyone who has taken a college finance course, you will hear things like “good debt and bad debt”. No debt is good, forget about your credit score (I will explain this in a future blog). And I know all the arguments, “well if you borrow at 5% and then invest and make 10% isnt that smart?” Yes if we lived in fairy gumdrop land and everything worked out perfect. More realistic is that you may earn 10% sometimes and you may lose 10% sometimes, meanwhile you have to pay taxes on that money and combined with risk its not worth it.

Ask yourself this, would you rather be $500,000 in debt, or $0? Easy choice. Does debt allow you to have things you couldn’t have at that time? Yes, so does stealing. Unless you plan on dying owing everyone money and leaving no legacy to your children, someday you will have to actually pay for all these things your borrowing money to buy. So why not just pay for what you actually can afford? I know that sounds crazy, but its what our grandparents did. By the way, most millionaires: debt free. And when I say millionaires I dont mean athletes and movie stars, those are anomalies and make up a fraction of actual millionaires. Im talking the hard working people who just handle money well and by default become rich. The typical millionaire saves 15-20% of their income towards retirement, lives within their means, and has no debt (their might be some correlation to why they’re a millionaire and not having debt, just sayin). Here is a tip, you want to be rich, do what rich people do. You want to be like everyone else, do what everyone else does. Most people in America are thousands of dollars in credit card debt, drive a new car making an average payment of around $400-$500, have student loans, and are living paycheck to paycheck. If you dont want to be like that, keep reading my blog and I will help.  By the way after 2 years of working towards becoming debt free, we now have a new washer/dryer, new tv, 2007 vehicle, all paid in cash. For anyone who thinks you will be forever eating ramen noodles, not true. Imagine if all the money that goes toward making payments was just yours every month, you could actually buy stuff with cash and not pay extra  for everything in the form of interest. Also when your paying cash, you tend to make more informed and less impulsive decisions.

Ok, I know ADD is contagious in this country so I will wrap it up. I will delve further into many of these topics in future blog posts. Please let me know what topics you would like to see covered.

Message to Claire: Basically, forget what everyone else is doing and do what makes sense. If it sounds like a bad idea, it probably is. Also, its not cool to do what everyone else does, it just makes you a follower. Be a leader, set a trend. People will admire you more for that, and the ones who don’t you don’t want to be friends with anyway. Oh and one more thing, an inspirational saying from Coach B at NW high “Up with Hope, Down with Dope”.