Monday, March 8, 2010

Living UNDER you means - part 2

I've been planning to write about saving. And, I will. But, first I think there is an even bigger issue that needs to be addressed in order to be prepared to save. We all have been culturally indoctrinated to always seek bigger and better. This is not bad in and of itself because we do want to work toward our goals and do what we can for our families. The trouble comes in when we push this so hard that we become willing to go into debt in order to do it.

I remember a time before I went In The Trenches that I looked around my house and realized that my home had a debt, and I was making payments on my car, furniture, washer and dryer, and even my clothes! And, it all happened with the simple phrase "Minimum Monthly Payments". I was making good income and $15 per month seemed so small but I didn't realize the slippery slope I was treading. It all became abundantly clear when my income level changed. All of a sudden my small payments were a big headache.

If you are In The Trenches right now you probably already know this. The transition point comes in our lives when we are able to say "NEVER AGAIN!". Most of our financial problems don't start with our job, our income, or our circumstances. Our financial problems start in our minds.

The funny and strange thing about living on a NO DEBT basis is that you would think you would have less. During the transition that is a definite possibility. But, looking at the long term, living on a cash basis will actually give you more. And, you will make wiser and better purchases as it becomes more important to keep a $20 bill in your pocket instead of seeing how quickly you can spend it.

Many of the money sites have great strategies for saving money, increasing income, and getting out of debt. Today I would like to recommend In this blog we can walk through the process of getting out of debt with Matt Jabs and his family and watch the progress they make.

The challenge for today is look around your house. What have you purchased on credit? Check you closet, kitchen, and yard. Is it paid off? The answers to this brief survey may shock you and help you begin to put things in perspective. And, if you are the type that looks at your friends and neighbors and wish you could get what they have remember that they too may still be making payments.

We have created an image of prosperity while our debts are keeping us in slavery.

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