We live in a day and age where innovation and invention in technology go hand in hand. Whilst these contemporary gadgets have been developed to create convenience and ease within our daily lives, the fact of the matter is that the general cost of living has increased exponentially.
Whereas a simple ice cream sundae cost a few cents when our grandparents were young, now that same sundae will be no less than a few pounds. With double digit inflation, the present generation has turned to taking on higher volumes of debt to make ends meet.
Not only that, societal dynamics have transformed and place importance on ownership of material goods. Hence, to meet such communal expectations, individuals turn to credit cards or take out loans. The desire to own the latest phone, the most expensive watch or the fastest car has twisted the general mindset and trapped it into a cobweb of financial burden.
This mentality is becoming a contemporary norm and will prove to be dangerous if not brought under control. It is vital to educate today’s youth how a debt free life can actually lead to true liberation.
Early Retirement Plan
What does your normal day look like? Let us guess-you wake up in the morning, go for a jog (maybe!), shower, go to work, have lunch, work again, go home in the evening and repeat. Yes of course, you may share a drink with a friend or go for a movie from time to time.
But is this really what life is about? It is a big world out there, one that you could travel around and see wonderous landscapes, breath-taking monuments, and experience a variety of rich cultures? Now, that’s life. Living and soaking each moment as it comes. And that is possible if you are not slaving away till the age of eighty-five to pay off debt that you have racked up over a lifetime. Did you know that the chances of early retirement are only possible if you manage to free yourself from the chains of debt?
The fact is that if you are under debt, then it will strain your access to cash resources for your future. Start planning now and cut down on costs that are not necessary. Free up some cash so you can put it aside and allocate it towards your retirement scheme. Every small penny saved will make or break your ability to retire at an early age.
Try to not let yourself nor your family get trapped by shiny designer products or expensive items. The more you spend outside your affordability parameters, the more debt you will have and will have to make monthly payments.
It could be a car loan, a house mortgage, or credit card debt that you are struggling to pay off-you will not be free to make a career shift and may have to continue in working in that job you don’t fancy so much. Life is unpredictable. You could wake up one morning at the age of 36 and realize that being a dessert chef is your newfound passion. Wouldn’t it be great to leave that banking job and pursue a course teaching you the fundamentals of such cuisine?
Imagine being able to pay for that diploma whilst being able to afford to take time off to dedicate your time to developing your craft. Now, that is true freedom! Being able to quit a high pressure job will only happen if you are able to live with less debt.
This may not be true for every case, but in our personal experience-it seems easier to increase the existing level of debt if we already have some. You may think that it’s just a few more pounds, what difference does that make? Well, as we stated earlier, each penny counts.
If you manage to attain a zero balance on your credit card, you will feel happier and a sense of achievement. You will work harder to keep it that way and will probably be a lot more conscientious of your spending patterns. Perhaps you will opt to use your debit bank card and will think again before even making the smallest purchase. Always ask yourself, do I really need this? It will just create more loans.
You could have a hundred thousand pounds lying in your savings account. But is that incredible amount a real reflection of your hard work and stringent spending? Or did that personal loan you applied for just get approved from TopLoanCompanies.com?
It is important to have an actual savings account where your money is the result of your hard work and not additional debt that you owe. Let it be only £500 or £1000, the point is that is money you can set aside for a rainy day. Take a small holiday, paint your house or maybe you just want to hold onto it so you can increase your overall net savings.
Being free from debt means being free from the cost of borrowing. This implies you will not incur additional interest expenses and can actually use that cash for something more productive. Every bank, financial institution or loan servicing establishment charges some format of interest rate as to bear the cost of giving you cash.
The longer you owe them, the more interest you pay. There is a reason why if you buy cars on cash are cheaper than those on loans. Over time, those interest charges can go up to thousands and thousands of pounds which you don’t account for.
Living debt free also means that you will be free from the stress it brings. It will not haunt your sleep at night and allow you sleep like a baby. No more long nights of turning and tossing where you worry about how you will make this month’s credit card payment or car loan amount. And imagine, all you have to do is simply spend less.