The first time I went into debt I was 17 years old. I purchased my first car, and even though I had enough money to pay for it in cash I took out a small loan. My parents thought it was important to start building my credit, and I did not disagree.
At 11 years old I had started my first job as a babysitter full-time in the summer for two of the most adorable and sweet children in the world! I was not a frugal saver, by any stretch, but I did put a lot in savings and then spent the rest. By the time I was 17 I had well over the amount needed for my car, but I also needed money for college. I opted for that small loan and a cushion in my savings.
I was so proud of myself when I drove that 2 door Chrysler Sebring home that summer before my senior year. My parents surprised me by putting some extra money down along with my hard earned downpayment. I was so grateful to them and so excited to have worked so hard for something that now materialized. My payment was $112.38 and I will never forget it.
On the ride home, I remember I was terrified. I was terrified because I now had another payment. Having a $40 cell phone payment and that car payment felt overwhelming and even though I worked full time in the summer and 30 hours a week during the school year it was scary.
Understanding that ‘terrified’ feeling did not come until my early 20’s. I finally realized that debt is scary because you aren’t in control anymore.
You Have No Control
Once you sign a loan paper with an interest rate and repayment schedule, you have lost control. What I mean is the income is spoken for and you have to work a certain number of hours JUST to make that payment.
That payment essentially controls your time. Time is something you cannot get back.
It Doesn’t Disappear During A Crisis
Have you ever lost your job and your first thought is “how am I going to pay my bills?” Your debt doesn’t disappear because you lost your job, or god forbid got cancer or a family member is sick.
When you make a decision to enter into debt you have the best of intentions to pay it back, but then life happens.
I will teach my kids that if you cannot pay for it in cash, you do not need it.
Yes, that simplifies it and you can argue with me and justify differently.
I have made those mistakes.
I have purchased things I didn’t need because a bank approved my income.
I have also lost my job and have then been in a position to figure out how I am going to pay those debts back and still feed myself.
Why put pressure on yourself that is unnecessary? You don’t need something that bad.
Avoidable Stress
Life throws you curveballs. Stress is unavoidable and you must learn how to manage it.
Debt, however, adds stress that is avoidable.
I am a minimalist and focus on eliminating stress where I can. Debt is one area I can control and my goal is to be 100% debt free so I never have to feel that stress again.
The stress that debt has caused in my life is not worth the material possession it provided for.
It Steals Your Joy
Debt always seemed to hang over my head and would never leave my mind. I always knew I had payments and could tell you to the dollar how much I had left to pay off that loan. I hated it.
Today, without looking at our loan, I could tell you the exact amount we have left to pay on our mortgage, because it never leaves my mind. Debt is not a way of life for me, I do not enjoy it.
Similar to Marie Kondo’s view around material possessions, if it doesn’t bring you joy, get rid of it.
It has stolen my joy far too many times and therefore I will eliminate it from my life.
It Determines Life Decisions
Have you ever been offered two different jobs; one with a significant salary that you would enjoy, one with a lower salary that you would love? Have you chosen the one with a significant salary because you would make more money and it provided more security with all of your bills?
I have. I chose a significant salary, a few times. I felt I had to take it because of my debt and bills. I felt trapped. I never want to feel that way again, so I will eliminate that pressure.
I will teach my children if they choose to say yes to debt, they say no to options. Life is meant to be joyful. Basing decisions around joy is my ultimate goal.
Have you started a debt free journey? Tell me about it below!
Always in love,
