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Being in debt is normal. Therefore, that means that budgeting and getting out of debt is weird.
Many people believe that being debt-free is unobtainable. This stigma allows some to classify debt, such as mortgages and student loans as “good” and credit cards and auto loans as “bad.” So why should you work so hard to become debt-free?
As you work towards becoming debt-free, you will begin to notice that having debt is much more than just a financial issue. It affects relationships and keeps you from living your best life so to speak.
Debt payments tie up a lot of your monthly income. Getting rid of it will give you the freedom to live life on your own terms. It can also prevent you from living your purpose because you are so dependent on the income from your current job in order to maintain. Being free from debt will allow you the opportunity to treat yourself. Start that business you have always wanted, stay home with your kids, or take a year off to travel the world.
Not having debt affords you the opportunity to invest even more in your retirement accounts. This could simply be the difference between working well into your 60s and 70s and reaching financial independence quickly so that you have the opportunity to stop working even sooner. Compound interest is a beast!
Being in debt comes with so much risk. One of the worst things is that you become dependent on your job. If an emergency happens, and you have no savings, it is a recipe for a disaster. You could potentially lose your home or car, be sued, or be forced to make the decision to file for bankruptcy.
Improve mental health
Life in debt can be stressful. You are constantly worrying about how you are going to pay the bills or what will happen if you are laid off. Getting rid of debt lifts a major weight off your shoulders and you will no longer feel trapped with no way out. You will be able to sleep easier and devote more time to your family, friends, and passions.
Improved mental health will definitely help you foster healthier relationships with your family, friends, and your spouse. You will no longer be resentful to your spouse for making impulse purchases or to your boss if you feel as if you are not being paid enough. Moreover, you will be able to help others learn from your mistakes by teaching them how to avoid, or pay off, debt in their own lives.
One of the best reasons for being debt-free is having the ability to help others in need. Whether it be a family or friend, a local organization or a homeless person you see on your drive into work. Not only will you have the means to help them financially, but you will also be able to share your wisdom and direct knowledge of how to get out of debt.
Knowing and understanding why you want to be debt-free will definitely help guide you along on your journey. If you keep these benefits top of mind, it will help those sacrifices feel so much more worth it. Good luck!