Live a Life Free from Debt
“The rich rules over the poor; And the borrower becomes the lender’s slave.” Proverbs 22:7
There are many lessons I wish I learned earlier in life. One example, save for large purchases instead of buying them on credit. Over the years I have at times made major purchases on credit because I felt “needed” it right now. I figured it was affordable based on the monthly payment amount.
I know many people follow the same logic. Rent an expensive apartment, furnish it with nice furniture (on credit). Add to that, a car (and a car note) and purchase a wardrobe with matching shoes and purse, purchased with a credit card.
But all of these purchases are good right? Maybe not, if it requires you to pay monthly installments to cover all the bills. You are now slave to the lender. You are required to work at that job or at an equivalent salary level just to pay the bills. In addition, all the bills add unnecessary stress to your life!
So how do you live a life free from debt?
- Prepare a written budget and live under your means.
- Save your money, then make purchases, so there is no monthly bill. That way you EARN interest instead of PAYING interest. You can save and buy a cheaper used car while saving for a nicer car that you pay in full when you purchase it.
- Build and keep an emergency fund so WHEN things happen you can afford to repair or replace it without relying on credit cards or loans.
You may not be able to fully pay for everything when you purchase it, such as your house, or even your first car, but if you minimize the amount of debt and pay for most of your purchases, you can live a life mainly free from debt. What does a life free from debt look like? You can live a life of peace, stability, generosity and be a blessing to others. How does THAT sound to you?
