LIVING A DEBT-FREE LIFE ISN’T FINANCIAL FREEDOM

 By Sariah Savvy Tips

DEBT IS THE BOOGEY MAN

Most of us have heard that debt is bad, and we should eliminate or avoid it entirely.  Excessive amounts of debt can be a problem for your wallet and relationships.  Many marriages end because of money issues.  I refuse to date anyone who doesn’t share my philosophy about money and won’t have a conversation about it from my perspective.  Having high debt can drive a low credit score even if you pay your bills on time.  Credit card limits are not meant to be maxed out.  If you max out your credit cards that signals your creditor that you may be in or headed towards financial distress.  I know it doesn’t make sense for creditors to give you a set credit limit, but punish you when you get close or to the limit. Debt also causes stress in our lives.  Debt is evil and should be avoided at all cost.

IT’S NOT FINANCIAL FREEDOM IF YOU ARE BROKE

Living a debt free life is a good idea.  When you have debt, your income is going to others and making them wealthy.  So, the more money you have for yourself the better odds of you finally experiencing financial freedom, right?  Not exactly.  There are many people who don’t have debt because they can’t obtain it due to bad credit or they choose not to have debt.  Not every single person that lives without debt is wealthy.  They are just debt free. You can be debt free and still not have financial freedom.  Financial freedom means to have choices.  Choices of where to live, the kind of car to drive, the brand of clothes you buy & how you can spend your social or free time.  It also gives us the freedom to help others.

If someone who lives in rough neighborhood does not have debt, does that mean they are experiencing financial freedom?  Absolutely not because this new found freedom is supposed to come with joy.  It is hard to feel joyful when you don’t feel safe in your neighborhood.  Remember, financial freedom gives one to ability to make choices.  If you don’t like your neighborhood, you can just move to another one.

In order for true financial freedom to exist, one must have an income that allows him or her to make desirable choices in life or housing must be affordable to allow one to free up more disposable income to take steps towards financial freedom. Yes, we can get rich with a great business, the stock market or real estate, but all of these things require money to get started and to sustain.  All of these things can potentially put us on a path to financial freedom.

Banks wouldn’t like it if we all stopped borrowing money, and it would probably hurt the economy.  However, people would probably start to see their health improve.  Being debt-free is a good thing.  However, the ultimate goal is to not solely to be debt-free, but to have more money and to have more freedom with it.  It isn’t very fun being debt-free and having to depend on public transportation or ride-share, only, to get you to and from.  Keep in mind that financial freedom entails being able to make desirable choices and not subpar ones on a consistent or everyday basis.

 

 


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