Are you stuck in debt? Then change your mindset. The average American has over $90,000 of debt. Debt is accepted in society more than ever. Car loans, student loan debt, credit cards, and any other debt are the norm. People actually look at you strange if you don’t have debt. But, this debt can be crippling to your life and your future if left unchecked. The funny thing is that, if all or at least the majority of Americans followed a different thought process, this financial issue in the U.S. and globally would be very different. It all starts with what i call a freedom mindset.
Freedom: What We Are All Seeking
Have you ever looked around? Many of us seem to be wandering aimlessly around in life, waiting for something to happen to them. They are impacted heavily by their environment and only react from external motivations. They see commercials on television of kids wearing the coolest new clothes, their cool vacation spots, their in-style cars. Their emotion pushes them towards purchasing material items, when in reality they cannot afford them. We see this process for many material items in life that society tells us we must have. College is a big one, marriage is another one, and a home is a HUGE one. When you engage in consumerism and consumption you are putting yourself in bondage to debt. People who are in debt are not truly free.
The Freedom Mentality
What do you think of when you think of freedom? I think of the ability to spend your time however you want, and in that sense, if you are not financially free, then you are not free at all. It is interesting though, you will see many people that make a lot of money (high income jobs) but in truth have no freedom, because they must keep those jobs to maintain their lifestyles.(I see this personally everyday). These people live without a freedom mentality because their focus is not freedom. Who knows what their focus is, but in my opinion they need a mentality shift.
The focus of our lives should be creation and innovation, and freedom. If we have any ambition then we will strive to add a great deal of value to the world, in our own way based on our passions, and if we can do that, then we will eventually become financially free, its virtually a guarantee. Its virtually a guarantee. Similarly, if we simply focus on keeping our “high paying jobs”, we will almost be guaranteed a lack of financial freedom, or at least not before we are nice and old. As Dave Ramsey likes to say, “you can’t out earn stupid.” The point is to change your mindset and your approach towards money and finances.
Thoughts on Debt
As mentioned, debt is a lack of freedom. If you are in debt, you are constantly in need of income to pay off your creditors, which is not something you should accept as normal.
I think that is the problem for many of us. We convince ourselves the debt is okay, because its for things that we “have to do or have”. Consider the following. Is the college likely to pay off your debt quickly? Can you pay off your mortgage in cash if you need to? Can you afford to drop $100,000 on your marriage? Do you need a brand new car when a used one will get you around just fine? Do you have to buy something today, or would waiting a few months to save up cash be a better route to take? If you will go broke from it, don’t do it. The main point; debt will cripple your appetite for risk and limit your happiness to an extent, so tread carefully.
Are you stuck in debt? Then change your mindset. Once you realize the freedom and choices that being truly free can bring, then you have taken an important first step. The next step is to create a plan of action to start getting out of debt. Create a budget, cut expenses, pick up side work, and sell unwanted items. A good place to start is by reading The Total Money Makeover. The advice is basic, but it will help you to look at money in a totally different way. If you are in debt and want to be free, then hopefully this article has inspired you to take that first step towards freedom. Now go and be free!
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