How
do we fully take control of our money? Well in my brain it is simple just get
out of debt and don’t go back into it. Yes I know that it is easier said than
done but in reality is it? What do so many people stay in debt? Why do people
take out new debt? And why is there very few people who do something about it
and get out of debt for good? These are a few questions that run across my mind
when I think about this subject.
So
why do people stay in debt? I feel there are a lot of reasons for people to stay
in debt but there are two that stand out to me. The first one is because they
need to pay an emergency of some sort. They have what is called an emergency
credit card. I feel that this is a good idea but at the end of the day you
should just save up that same amount and then cut up the credit card and have a
emergency fund instead. The second is they feel like their credit score would
go done. They are right their credit score would go down but all a credit score
shows is how much debt you can balance not how good you are with your money.
Author Dave Ramsey says: He knows everyone wants a house and they think that
their credit score has to be high. He goes on to say he has a credit score of
0points because he has no debt. He says if you have to get a loan for a house
or a car go to a bank that has their own underwriting department. I just don’t
think people are aware of how to live debt free. We have the mentality in our
world today that you are not a grown up if you don’t have a credit card or car
payment. I know a lot of people make the
excuse well I want a reliable car or I need an education so I need to go into
debt for that. All those make perfect sense but know what you are getting
yourself into. If you have to get what you call a reliable car by buying brand
new and going into debt then make sure that you get just what you need so that
you do not have such a high bills. With school just go into debt for what you
need in your situation so that you do not have as much to pay back.
The
second question I had is why do people stay in debt? I think a lot of that
answer has to do with the person’s circumstance. Sometimes it is because they
have no money to get out of debt and other times it is they do not want to be
patient about saving for things so they keep a credit card in case they find
something that they want right then. I think most people just have not figured
out a way to budget their money to stay out of debt.
My
last big question is why is there so few people that live debt free now? I
really believe it is due so much to the, I want it now mentality. We as a
people don’t want to wait until we have the cash for something we just want
what we want now and we don’t care about how much extra in the end that we have
to pay. I admit I have been sucked into the, I want it now mind set. But I have
found that it has just gotten me into trouble.
I
believe there are so many reasons to go into debt but there is one big reason
to get out and stay out of debt and that is PEACE. The peace that I feel
knowing that when money comes in that I get to keep it and not have to make
that next payment on a car or credit card. My money has become my money like it
never was before. That is the peace that I want in my life. If you would love to know more about the things I have been talking about then look at my research below.
Works Cited
Forbes.com : 5 steps to
take back control over your money
By Erik Carter
Moneyning.com: 7 frugal
habits everyone should develop
By anonymous
Dailyfinance.com: 3 ways
to take control of your finances.
By Bruce Watson
Centracu.hodeed.com/classes/take
control of your
By anonymous
Americasaves.org: Saving
on a tight budget.
By Anonymous
The Total Money Makeover
By Dave Ramsey
