Have you noticed the increased buzz about “becoming debt free” lately? Everywhere we turn, more and more people are talking about clipping coupons, cutting expenses, building emergency funds, etc. This has been especially true over the last year or so.
Why all the hype? Why are so many people looking to rid themselves of their debt which, in many cases, they have been carrying for years or even decades?
The economy has had many dips and dives since coming out of The Great Depression, but this time it seems different. Many individuals and businesses are cutting back and making changes they’ve never had to make before.
So what makes this recession different from all the other recessions our economy has experienced since the depression ended in the early 1940s?
Personally, I see it is a buildup of bad financial habits from those in leadership. Our government has been mismanaging money for a long time, and those poor choices are finally starting to catch up to us.
For years now, whenever our country needed more money, the Fed would just print more. Recently, however, international lenders have become privy to (and tired of) our gross financial mismanagement, and confidence in our dollar has dropped.
These things have resulted in a very real shift in American economic power, and have further weakened confidence in the dollar as the standard global currency — and rightly so.
Freedom from debt puts control back into your hands!
This sense of a very large, looming problem is causing more and more Americans to take matters into our own hands. I know that my wife and I have been inspired to act. We’ve had debt as long as both of us can remember, but now we’re doing something about it — and we’re not the only ones!
Along with the great consumer crash of 2009, there has been a great consumer savings boom of 2009!
It’s true. Since the 1st quarter of 2008, the personal savings rate has risen by 5x to it’s highest level this decade. Not only that, but people are cutting expenses and looking to create alternate sources of income as a hedge against job loss.
In my opinion, this recession has had a very positive impact on America. Most Americans were living way above their means… Just like our government. Facing hard times every once in awhile is a good thing, as it helps keep us on our toes and helps us maintain a proper perspective.
Personal finance is personal
Because we are in our early 30s, we’ve never had to live through a large scale economic downturn as adults. The events of the past few years, and the changes that we’ve made, will affect us in a positive way for the rest of our lives! We plan to never abandon the solid financial principles we’ve learned.
What about you?
Have you recently developed a strong desire to become debt free?
If your answer is yes, I challenge you to answer these three questions:
- Why are you seeking freedom from debt?
- How do you plan to get there?
- What do you plan to do when you achieve debt freedom?
Here are my answers:
- I want to be in greater control of my own daily life and I don’t want to be a servant to anyone else.
- My financial philosophy is, “Sacrifice now to Benefit later!”
- I never plan to retire. Instead I plan to work on my passions at my leisure. Currently, those passions include – blogging, teaching, and speaking about personal finance, true healthy living, and self-reliance. I plan to have enough money in the bank to allow my family and me to live a humble and modest life off the interest, then give the rest away.
I hope you will share why you want to be Debt Free!