Do you want to be debt free today?
If you have the money in the bank, of course, you can pay off all of your bills. However, for most of us, being debt free today, is more of a mentality than a reality.
Being debt free today, means no mortgage, no auto loans, and no credit card bills. It means that everything you earn goes into your pocket for spending this month, or for saving for the future.
In today’s consumer culture, that doesn’t seem likely for most people. In fact, most Americans dig themselves deeper in debt each, and every month.
But, if the current economic slow down has shown us anything, it is that we have to become more responsible consumers.
People bought bigger houses than they could afford, assuming that the housing market would rise forever. They thought that when their interest only loans ran out, and they would have to pay the principal, they would just refinance at a new, lower rate. They were wrong, and they have suffered foreclosures in massive numbers, as a result.
But it is not just the home market, where irrational exuberance took hold. People went out, and charged up debts like there was no tomorrow. In fact, after the 9/11 attacks, President Bush even encouraged people to go out and spend, to show that the terrorists couldn’t damage our economy.
He passed stimulus bills, which just put the debt burden on our children. He gave us money today, which our children, and grandchildren, will pay back with interest.
Perhaps that was necessary given the environment we were in, but now it is time to look at other options. In short, we should look at being debt free, today.
The first thing you should do, is make a budget on two pieces of paper. The first page “A” should include all of the things you have to pay. Be judicious on this page. The “A” page should include non-negotiable items, such as your house payment, credit card loans, car loans, etc..
You will also include the things you absolutely need on the “A” page. For instance, you have to have food to live. But, how much do you have to spend on food? In reality, you probably can find ways to feed your family on a lot less money. Eating out is not an “A” item. Steaks are not an “A” item.
Clothing is another area, where you can save money. While you need basic clothing, thrift store prices find their way into your “A” budget, whereas designer jeans go on the “B” page.
Your “B” page includes all of the extras. You may find that there’s not a lot left over for the “B” page at first, when you are trying to live debt free, today. But, over time, you will find that you can afford more things on the “B” page.
When you get a bonus at work, you can add it to the items on the “B” page. When you get a tax refund, it can go to “B” items. Any increases in salary, or second jobs, can fund “B” projects.
Or, you could use some of the extra money, to try to eliminate some of the bills on your "A" page, to help you to attain your goal of living debt free, today, much faster. As each bill that is eliminated, gives you more for the items on your "B" page, which would help you feel less guilty for spending the extra money on luxuries. You will be able to enjoy the luxury spending much more, if you truly can afford the luxuries. I know that this will not be easy to do, especially when we live in an instant gratification world now, but the rewards will far out weigh the sacrifices made, when your goals are finally reached.
If you are serious about living debt free today, you will take a careful look at your budget. You don’t have to buy into the consumer culture that plagues America. You can chart your own course. In other words, you can be debt free, today.
If you have the money in the bank, of course, you can pay off all of your bills. However, for most of us, being debt free today, is more of a mentality than a reality.
Being debt free today, means no mortgage, no auto loans, and no credit card bills. It means that everything you earn goes into your pocket for spending this month, or for saving for the future.
In today’s consumer culture, that doesn’t seem likely for most people. In fact, most Americans dig themselves deeper in debt each, and every month.
But, if the current economic slow down has shown us anything, it is that we have to become more responsible consumers.
People bought bigger houses than they could afford, assuming that the housing market would rise forever. They thought that when their interest only loans ran out, and they would have to pay the principal, they would just refinance at a new, lower rate. They were wrong, and they have suffered foreclosures in massive numbers, as a result.
But it is not just the home market, where irrational exuberance took hold. People went out, and charged up debts like there was no tomorrow. In fact, after the 9/11 attacks, President Bush even encouraged people to go out and spend, to show that the terrorists couldn’t damage our economy.
He passed stimulus bills, which just put the debt burden on our children. He gave us money today, which our children, and grandchildren, will pay back with interest.
Perhaps that was necessary given the environment we were in, but now it is time to look at other options. In short, we should look at being debt free, today.
The first thing you should do, is make a budget on two pieces of paper. The first page “A” should include all of the things you have to pay. Be judicious on this page. The “A” page should include non-negotiable items, such as your house payment, credit card loans, car loans, etc..
You will also include the things you absolutely need on the “A” page. For instance, you have to have food to live. But, how much do you have to spend on food? In reality, you probably can find ways to feed your family on a lot less money. Eating out is not an “A” item. Steaks are not an “A” item.
Clothing is another area, where you can save money. While you need basic clothing, thrift store prices find their way into your “A” budget, whereas designer jeans go on the “B” page.
Your “B” page includes all of the extras. You may find that there’s not a lot left over for the “B” page at first, when you are trying to live debt free, today. But, over time, you will find that you can afford more things on the “B” page.
When you get a bonus at work, you can add it to the items on the “B” page. When you get a tax refund, it can go to “B” items. Any increases in salary, or second jobs, can fund “B” projects.
Or, you could use some of the extra money, to try to eliminate some of the bills on your "A" page, to help you to attain your goal of living debt free, today, much faster. As each bill that is eliminated, gives you more for the items on your "B" page, which would help you feel less guilty for spending the extra money on luxuries. You will be able to enjoy the luxury spending much more, if you truly can afford the luxuries. I know that this will not be easy to do, especially when we live in an instant gratification world now, but the rewards will far out weigh the sacrifices made, when your goals are finally reached.
If you are serious about living debt free today, you will take a careful look at your budget. You don’t have to buy into the consumer culture that plagues America. You can chart your own course. In other words, you can be debt free, today.
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