Living a debt free life provides many benefits and little hindrances. But have you considered paying off those debts? Below is a little motivation.
A couple of years ago, I went on the Dave Ramsey Show after paying off all of my personal debt. Since then, I have graduated from college, gotten married, and found a great job that I love. We also added a fur friend to our family. I’ve traded in hanging out with friends at school for dinner dates with our laundry and the dishes (my wife runs a pretty tight ship).
All kidding aside, a lot has happened since I became debt free in 2015. A family member sent me over this picture from Dave Ramsey’s page and got me thinking, “What are the best things that becoming debt free have done for my life?”
While I live it every day, I know many of you aren’t in the same place. So here is my best ‘sell’ to a debt free life:
7 Reasons to Live Debt Free
- Live with peace. When you have zero debts that you are responsible for, a weight seems to be lifted off of your shoulders. Imagine if you had no past due medical bills? What kind of peace would that grant your family? Or imagine if you didn’t have that pesky car payment to make? What could you do with that money instead?
- Live with margin. A big component of financial peace is having margin between your income and expenses. Becoming debt free adds margin to your finances. The extra couple hundred dollars paid to credit card debt or car debt could be used to add more freedom and flexibility to your finances.
- Live with more. Adding back that extra margin into your finances also allows you to save more for things like an emergency fund, new car fund, or for a down-payment on a house. Maybe even a nice trip to Europe?
- Live for the future. Another perk to being debt free is you can attach your retirement savings. 55% of Americans have less than $10,000 saved for retirement. I’m fortunate to have saved more than that statistic already, but I know I couldn’t have done it without eliminating my student loans from my life.
- Live well. Look, having no debts means your going to have more money to play with as well. More for tickets to the big game or concert. More for spontaneous trips with your loved ones. Having zero debts adds space to do things, too.
- Live with continuity. Becoming debt free sure does make money discussions with your spouse much easier. While not the only thing married people fight about, money fights and money problems are the number one cause of divorce in North America. Being debt free takes a lot of the worry out of the finances.
- Live with purpose. The best part of becoming debt free is being able to live with purpose in your faith. As a Christian, I can apply more action to my faith by having a clean slate. Tithing and giving generously are much easier when you have more margin in your budget. These work-based things will not get you to heaven. But it is nice to feel as though your finances walk in line with your beliefs.\
If these points spark an interest for you, feel free to reach out to me or look into one of Dave’s classes. Either is a great place to start.
Ultimately, deciding to become debt free is something that you have to want to do before working to reduce debt. It’s the only way you will be able to become debt free.
Question: What is one thing you would buy for yourself if you were debt free?