Debt has often been compared to bondage. Slavery was once the norm for many nations and kingdoms in the world. People who were slaves had their lives completely controlled by those who legally owned them. A lot of people waste their lives away being obsessed by something that no longer exists in the United States. But where is their outrage about themselves, or other people being in bondage to debt? When people are in debt they are truly slaves to those they owe money to. They have no peace of mind as they have to labor to pay their debts. The sad thing is they have made themselves slaves by their own doing.
People do not like to be called incompetent or even to admit their incompetence, but most people who are in debt are there because they are incompetent in handling money. Some people, of course, suddenly find themselves insolvent because of an unforeseen accident or illness but they are not the focus this article.
A lot of debt happens because of pride. The Bible often condemns pride. A good example of pride is your neighbor buys a new expensive truck he does not need and cannot afford hoping to impress others. Then you buy a new expensive truck you do not need and cannot afford hoping you can impress others. Then you struggle for years to pay off the debt only finding yourself in “need” of a new truck when you finally pay your last payment. Why does someone living in a city or subdivision need a truck? Likely few do. In the rare circumstances when they need a truck to haul something it would be much cheaper to rent a truck or pay someone to haul whatever they need hauled.
Then there is he brand new car that costs a lot of money and takes years to pay off that a lot of people think they absolutely need. Is there not good used cars available for a lot less money. Families are getting smaller but houses are getting bigger. Would it be better for people to buy houses that are big enough for their needs which they can afford rather than struggle for years to pay off a huge mortgage? I once talked to a woman who wanted to move from the city to the suburbs because her friends had bigger houses in the suburbs than she did. Is not that pride?
Financial advisors tell us to pay off our debt. Pay the ones with the highest interest first. It might take a while to get out of debt, but with determination it can be done.
Financial experts give us some strategies to use to avoid debt. Before buying something expensive take some time to think about it. Ask yourself, and if you are married in consultation with your spouse. Do I really need this and can I afford it? If you do that, chances are good you will decide not to buy it creating more debt. You may also consider buying something used or on sale. Also most things you think you need immediately can wait such as the car that has 120,000 miles on the odometer. The experts also recommend having a budget and sticking to it. Having a budget forces you to plan all your purchases.
Dr. E. Jeffrey Hill, a professor who teaches Family Finance in college, gives his students three things to remember as they plan their financial future:
- Life is hard, but you can do hard things, even balance a budget.
- When life does not go as planned, make the best of it.
- Remember TTT. Things take time. The best financial plan is a get rich slowly approach.
It has been suggested by some that a home, an education and transportation are the three things that might justify borrowing money to buy with a lot saying some educational majors are not worth the investment.
Another good tip for saving money is learning to do yourself. People can save a lot of money on home and auto repairs by learning to do the work themselves. You can find a video on u tube that will teach you how to do many things. Recently my dryer stopped heating. I found a video showing me how to find the problem with a meter that cost less then $20.00 and a part that cost less than $12.00. The repair company charges $100.00 just for a house call. My advice to free yourself from bondage.
This is an opinion blog for Conservatives and People of Faith.