It’s no secret that I’m not a fan of debt.
I hate it. But it isn’t for any sort of moral reason, other than the fact that it creates all kinds of problems for the budget.
Debt messes with your priorities.
Think about all the money you have, and giving a job to each of those dollars. When you have debt, you have to assign dollars to the past. At any given time, with debt, you can’t deploy all your money to your priorities because debt is needy, and it requires payments.
The debt is like, “Hey, you owe me! Now!” Preventing you from really aligning your dollars with your present priorities.
And to make it even worse, you are probably paying for things from the past that weren’t ever priorities. Not always, but most of the time, I would venture to guess your consumer debt is for things that you don’t really care about.
Consider the balance between your obligations and your priorities, because essentially priorities is just a code word for wants.
You want to minimize your obligations so you can maximize the dollars devoted to the things you want. You have to cover your present obligations—you can minimize them—but you can’t get rid of them all. But debt is paying on past obligations, and skewing the scale.
Your debt is robbing your ability to fund your future. So, attack that debt and assign your dollars to what’s most important today and in the future.
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Until next time…