ss_blog_claim=6cd73fab0d1dd89407889b31eb885dd3 ss_blog_claim=6cd73fab0d1dd89407889b31eb885dd3 Blog Directory Things I Did Not Know Before: Living Within Our Means, A Debt Free Life

Friday, May 22, 2009

Living Within Our Means, A Debt Free Life


It became very obvious and upsetting to realize we had so much debt. The boat, camper, new clothes and cars took all our income and we had nothing left to save for our future. It's because of this that we I decided to quit buying things we WANTED and focused on saving for things we NEEDED. We began paying off debts and consolidating loans. It took a few years to actually get our debt down to a manageable amount that we could handle without carrying credit card balances.

Then we started looking toward the future, saving our money, rather than looking back at all the things we bought and gone into debt to own. We had begun to learn to live within our means. It is so important for parents to explain this to their children as my father did with the analogy of credit card debt to "paying for a dead horse".

Many people today are in such great debt that bankruptcy is at its highest. Because many adult children want to immediately own what it took years for their parents to get, banks are making a fortune on the interest they make from loaning money. If bills can't be paid on time, then additional charges are added and the debt starts to spiral out of control.

If more people would invest their money in their futures rather than throwing it away on intangibles today, there would be less debt. If people would buy the things they need and not just anything they want, they would be able to actually know what they own. As Benjamin Franklin said, "Pay what you owe, and you'll know what is your own". People would buy what they could afford and needed and would know what they actually OWN.

7 comments:

  1. Hehe ... you will not believe this, but my solution to eliminating my last remaining credit card debt will be to move to the Philippines. I was waiting and waiting to pay off all debts before retiring, then one day sat down and worked out a budget for life in the Philippines.

    Well, after adding up all the numbers, it turned out that I would have more discretionary income than if I continued to work and stay in the USA. One more month to go ... and good bye USA and bye bye credit card bills.

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  2. Credit Cards is more on disadvantages because I cannot control shopping online and mall

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  3. thanks for this info mare. i am actually trying to consolidate all my credit cards and loans. naku parang marami pa obligations ko kesa sa assets eh :D

    how are u?? u are right mare.. naku ang the notebook di ako magsasawa panoorin.. hmmm i will feature that on the next tuesday couch potatoes :D

    miss hearing from u! am glad u left comment :) weeeee

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  4. thanks for sharing this ideas..god bless!

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