When we say live without debt, we’re talking about the consumer kind. The sort of debt that makes you lie awake at night, staring at the ceiling and wondering if that $400 a month car payment was really worth it. You’re never going to build wealth that lasts if you’re hemorrhaging cash at the same time. It’s like trying to keep a sinking boat afloat bailing with a teacup – a lot of activity and not much progress.
Chances are, if you’re like most recent college graduates, you’ve developed some pretty godawful spending habits as a result of never having cash to spend. Consequently, when you did stumble across a few spare dollars in the laundry hamper it was off to the local bar or fast food franchise.
Hey, it’s college. We won’t crucify you for it but realize this behavior is adamantly opposed to investment success. The problem we see with debt is it eliminates choices; remember, we’re talking about stuff like car, student loan, and credit car payments. These kind of things must be paid or you’ll get into even bigger trouble. Even with a good job, it takes a good portion of your income to cover debt payments, rent, and food.
Whether it be a nice honeymoon or investments, having no debt lets you save for the future. That’s good, right? It’s about quality of life and the sooner you realize how detrimental debt can be for that, the sooner you’ll start living the life you dreamed of.
The Young Wealth Team
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