Understanding Debt

organizational-debtHere’s the deal. There is a lie that is being told about money in North America that needs to be exposed.

Every part of the countries we live in believes that the way to live is to beg and borrow until you have achieved the standard of living you desire. The problem with this is that you never stop to actually breathe and be fully present in the few days we are given.

Think about it – the driving force behind how we survive is money – and more importantly, how we don’t have enough of it. Marketing companies will do everything they can to make you believe that you need a product, and better yet, one that you really don’t have a use for. Have you ever bought a product and then instantly felt buyers remorse? After a while, that feeling goes away, but especially on big purchases — you begin to feel like you could have spent that money on something different. I know guys who have AMAZING computers – to surf the web…..

The average person in the United States works more than 30% of their lives — and you can always work more – get a second or third job, all in an effort to get the money we absolutely need…?

It’s crazy. Debt is one of the leading ways people get into these messes. They take on homes or lifestyles that they can not reasonably support. Sometimes it’s in an effort to impress someone or some group, but most of the time I think it’s about how we perceive ourselves.

So when you hear about the new car dealership who is offering sweet deals on luxury cars, why do you think it appeals to someone? And if it appeals to that someone who can’t afford it…. they will work on the financing (debt) to get it in your possession. The problem with debt is that when you buy something with credit (on someone else’s dime), you don’t actually own it. Whoever lent you the money is the rightful owner – until you pay them back – usually with interest.

So now you’re not going to work to make a paycheck — now you’re going to work for them – because you told them you would pay them back in a specific time period — so you have to come up with that money — likely at a job.

So when you see someone driving an expensive car or living in large homes — remember that they likely don’t actually own it. They are borrowing it from someone who is getting rich off of them so they can use that item.

Simply: Why do you want to live your life for someone else’s gain? Doesn’t that just sound awful? I had this realization a few years ago and my wife and I started working hard to pay off our debts. It’s crazy to think that we go to work each day to pay other people for choices we made. There are a lot of studies too that show the wealthiest people have very little or no debt. They operate within their means, save and only buy things they can truly afford.

So the next time someone offers you a credit card to pay for something – scream and run. Focus on getting rid of your debt first — then your life can truly begin.


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