8 Reasons Why Being Debt Free
Every Paid Off Penny
It's hard to imagine life without debt. For many people, it is a normal part of their everyday lives and not something that they will ever get rid of. There are many reasons why this is the case.
However, living paycheck-to-paycheck, having an emergency fund for unexpected costs and maintaining a retirement account can all be difficult when you're constantly paying off your credit card balance every month.
The great news is that there is another way! What if you could find ways to make more money while still keeping your expenses low enough to pay off your debts over time? More importantly, what if we told you that being debt free has tons of other benefits too? You'll never have to worry about overdraft fees again!
You already know I am a big fan of freelance work to bring in extra income, but what I want to focus on today is WHY being debt free is worth the pursuit of extra income to get there as soon as possible!
God says so.
You may or may not be a Believer in the Bible, but anyone that knows me, knows Jesus Christ changed me in supernatural ways. Long story short, I believe every word of His Word, the Holy Bible, and His promises that keep us from unnecessary struggle. By adhering to His reminder in Proverbs 22:7 (I'll let you look it up because there's power in reading it), we are gaining wisdom that sets us up for success. The success that any loving Father would want for His children.
Tip: Chances are VERY HIGH that you have a Financial Peace University class taking place at a church or location near you! Just look it up here and consider joining the many others who are taking their debt free journey head-on! And don't worry, you don't have to be a Believer to attend the church-related events.
Your credit score will improve.
Now, in the world of debt freedom, there comes a time where the credit report doesn't actually matter any longer, but that's much further down the line and well after debt freedom has been reached.
In the meantime, having a better credit score can help you significantly with your financial goals. While we aren't encouraging taking on any more debt, there are rare circumstances that would warrant such (consolidation loans and refinancing) where having a better credit score can help you save money in the long run!
Tip: Check your credit score and report annually through each bureau's website so that any errors are caught before they become more serious! Check your credit scores with free apps like Credit Karma or check with your financial institution to see if they offer credit monitoring for free. Also, take advantage of yearly credit report checks that are free 1x every 12 months from the three major companies, Experian, TransUnion & Equifax.
You'll have the freedom to purchase what you need when you want it.
The debt free community is usually pretty big on watching out for "lifestyle creep". Lifestyle creep is the idea that over time with more income, lifestyle purchases can become a bit more ... frequent and costly. With debt being paid off, it frees up more income that can then be used for something other than a minimum balance to a creditor. However, it is all about balance, right?
For Ryan and me, we have taken the nearly $1580 we were spending in minimum monthly payments every month (cars, medical bills, personal loans and credit cards) and instead we now can not only invest 10-15% of that every month, but also we enjoy the fruits of our labor by way of a once-a-month house cleaning, a personal trainer and the occasional massage and facials. We still have plenty for other things, but I'd be lying if I didn't share with you how excited we are every month to not have to fret when someone wants a little something *extra* to enjoy or buy back time.
No more banking fees!
Oh man, that dreaded overdraft fee was a cycle that I couldn't break for as long as I could remember. Before I met Ryan, I remember dealing with the issues of "not enough money, but still a lot of 'month' left". I'd have to make that decision at the ATM where I'd pull the full $500 overdraft, knowing I'd only suffer the overdraft fee of $20 once. It was a vicious cycle for about three months. The saddest part is, I didn't even need to be in that position. I simply didn't have a budget so I wasn't managing where my funds went responsibly.
Getting out of debt has given us a MASSIVE cushion so far away from the humbling overdraft fees.
Better mental health.
Being debt free truly feels like a release of far more than just being slave to the lender. It also gives you this incredible opportunity to serve, give and live in a new way. You become less consumed with your own wants and more focused on giving back and living in a way that brings joy to others around you.
You can move on to saving for things that matter!
Oh man! This right here! We are able to take the funds we were paying debtors and instead build up an impressive emergency savings, INVEST in the stock market, cash flow more experiences (we are HUGE fans of Escape Rooms but they aren't cheap for a family of 6!) Now, a $2,000 car repair doesn't make us sweat an ounce. A recent $3200 root canal didn't put us into further debt with another credit card company. (I am not a drinker or a smoker, but I love me some Sour Patch Kids!)
Goals and dreams become possible.
Beyond the fun stuff you can buy more freely and the heavier things you're thinking about in the future like college or retirement, perhaps, you can also FUND YOUR DREAMS! Do you want to save up to remodel a room? Take guitar lessons? Learn to scuba dive? Once debt free, you have the freedom and the funds available to choose how you spend your extra time and money that isn't otherwise going out as soon as it comes in!
You can focus on things that matter to you more than money!
It isn't just about money. In fact, so much of the debt free journey is learning that money is just a tool. It's truly about a BIGGER PICTURE that becomes more clear once you get closer to DEBT FREEDOM! You start to see that life is so much bigger than just being consumed by money. It's about what you are doing for your family, community and the world around you!
Debt can be a tricky situation to get out of. But once you are able to break free from the cycle and become debt-free, it is life changing. You find yourself in a position where your monthly income can go towards things that inspire and support the life you dream of living! With this newfound freedom comes higher levels of mental health due to less stress about money worries as well as more time spent giving back so others around them feel joy too! If you need help achieving these benefits, contact me! I will always share any resources I can to help you on your way! And if you happen to live in Spring, TX, there is a Financial Peace class coming to you January 9th, 2022 hosted by yours truly at Gateway Church on Rayford Rd!
