Benefits of Debt Freedom
Ms. Money Counselor and I have been debt-free since we paid off our mortgage nearly fifteen years ago. Debt freedom has been wonderful! You can make it happen too. To help give you a bit of inspiration, here are what I’ve found to be debt freedom’s best rewards.
8 Best Benefits of Debt Freedom
- Instead of effectively flushing down the toilet many thousands of dollars in the form of interest charges, we put this money into IRAs and quit earlier than most people do working mainly to make others wealth(ier).
- We weren’t prevented from jumping into our on-going adventure of living on gorgeous and wild Vancouver Island because our house was underwater when we sold it in April 2009, right into the teeth of the housing meltdown.
- When Ms. Money Counselor is offered well paying but unappealing work projects, she often says “no thanks.”
- Fees for missing a deadline for a debt payment never ding me.
- I have standing to run my mouth on this site and to write with some authority the Simple Guide “Be Debt Free!” 😉
- In my mid-40s, I shifted the focus of the time I’m engaged in paid employment from earning money at companies making dog food (for example) to effecting change I care about and feel is meaningul. Yep, I earned less after the shift, but the rewards were greater and longer lasting. (Ever hear of the 60-car HOURCAR carsharing organization in Minneapolis-Saint Paul? I wrote the business plan for it, then helped launch the non-profit in 2005 with a half-dozen Priuses.
- In 2012 I began dealing with a major health issue. Without debt, my challenge hasn’t been made tougher and more stressful by wondering how I can keep earning enough while ill to keep the debt collector away. (And because we live in Canada, I don’t have to worry about losing my health insurance or skyrocketing premiums.)
- This one sort of captures all of the above. Having no debt helps me feel more at ease overall. I sleep well, I feel relaxed about our circumstances, and I don’t worry about our financial future. It’s worth a lot.
I know pretty much everybody unavoidably—and smartly—takes on debt during their lives. Debt can make sense to pay for an education or buy a house. (I finished college broke and with $15,000 in student loans, a $4,000 loan from my mother, and a $1,500 loan from my girlfriend.) The point here is to appreciate and anticipate the benefits of being debt free so you’re motivated to put together a plan to get there. Have a look at “Money Start-Up Guide” and “Facebook Your Net Worth” to get launched.