Everyone knows that I am a huge fan of living a debt free life. I want others to experience the same joy and sense of peace that I have. Yet, unfortunately, not everyone is able to live a debt free life. I see this every day. My friends closest to me not only are burried in college debt, but are piling on the consumer debt. It’s unfortunate that people make these decisions. While I don’t know everyone’s motivation for burrying themselves in debt, I feel like if they understood the true benefits of living debt free, they would make different choices.
Living debt free is not merely about a balance in a checking account. Many people who fall into debt believe this is the case. But, it’s about so much more than that. Debt is an indication that you don’t have as much freedom. Being forced to pay back a loan means that a portion of your paycheck has to go to pay for an earlier choice. It could also mean that you have to work longer or harder than if you were without debt. Living debt free is ultimately about having more freedom. The freedom to do what you want and follow you dreams. This isn’t the only benefit though.
Not only do you have more freedom by living a life free from debt, but you also have the option of earning more money from the money that you save. With a little savings, you can find a high interest savings account to start earning interest income. It may seem like an insignificant amount at first, but it slowly grows to be something substantial. A great example is how my wife and I earned almost $100 from interest this past year alone. While this won’t fund our next vacation, it will continue to get bigger as our savings increases. In a couple years, we may make $500 in interest within a year’s time, and it only continues to get bigger as long as we don’t waste the principle.
By living a debt free life and choosing to save money instead of spend it, you not only give yourself more freedom, but more income as well. The combination of these two things only increases your happiness and peace of mind. If you are living in debt and trying to motivate yourself to get out of debt, start thinking about what your life could be like.