We’re Debt Free [And How You Can Do It]
For many Americans, screaming, “We’re Debt-Free!” and ultimately living a life without financial stress seems somewhat impossible. The messaging on the internet, social media, news, and even within homes promotes a culture of buying now and paying later.
After buckling down for about seven years, my wife and I were able to pay off our home mortgage, vehicle loans, credit card debt, recover from a prior-forclosure, and set us up to retire with over a million dollars in my employer-sponsored retirement fund. We did this by hitting rock bottom by living a “normal life” and realized we were tired of living paycheck to paycheck.
My Debt-Free Life Started Late In My Adult Life
To change our lives so we could eventually say, “we’re debt-free” required several tactics:
– Significantly reduced living expense – Sold unused household item – Increased income through multiple source – Focused on reducing credit card debt – Built an emergency fund – Sold our expensive vehicles with high car payment – Ignored social media
Social Media And The Need To Impress
Social media’s influence can easily create the illusion that material possessions are a source of success and happiness. For example, when your friend posts about their brand-new Mercedes on Facebook, you might feel compelled to buy a new luxury car to stay current, too.
The world of consumer advertising also influences impulsive purchases that lead people to more debt. For example, many car dealerships advertise very low-interest rates and zero down on new car purchases.
Being financially literate is important because it allows you to make better financial decisions regarding purchases, investments, and future financial planning. Unfortunately, the teaching of financial literacy related to personal finance is not emphasized in many schools, and most people do not have access to financial literacy classes throughout their lifetime.
Limited Financial Literacy
Organize Your Finances Budget For Monthly Expenses Separate Fixed And Variable Expenses Prioritize Debt Pay Off Use A Cash Envelope System Reduce Or Eliminate Monthly Subscriptions
14 Ways You Can Also Live A Debt Free Life
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