Financial – The Curse of Debt

October 28th, 2009 Tags: | financial crises, debt
Posted in Financial

Debt is Economic Bondage!! Get out on debt and stay out of debt. There are only 3 items that you should consider using credit to obtain. The first would be for transportation such as a vehicle. Consider a used vehicle ( I have had good luck with rental agency used cars ) financed through your own credit union or bank. Second would be a college education, but only if your major was in an occupational field that had good hiring opportunities for graduates. One occupation that will always be hiring is the medical field. There is an abundance of opportunities and openings available, with the aging population. The third item that you should consider using credit to purchase, would be a home. A home which is within your limited budget. All other purchases must be paid for with cash.

The cardinal rule is to “live within your means”. If you do not have the cash to purchase an item, then you may not have it. There is a difference between wants and needs. Only get what you need. Once you are spending within you means, then start to accumulate an emergency fund. You should accumulate enough cash in your emergency fund to last for six months in case you loose your income.When you have reached the point where you have an emergency fund in place, start to reduce the debt load from your vehicle, college and home. Once you are debt free, you can then begin to save and invest with the guidance of a professional financial adviser. But always remember first to “Invest is Something that will make You Wealthy, Invest In Yourself”.

The best advice is to accept and understand that “You are Your Own Security”. You are responsible for the actions that you take and it is you that will reap the consequences of your decisions. Keep in mind that the banks and credit card companies are in business to lend you money and put you in debt.  Unfortunately they do their job all to well.