do it yourself FREEDOM

Impacts: Mind, Home, Work, Money, Time

“A man in debt is so far a slave.” – Ralph Waldo Emerson

Our strong desire to consume tends to lead each of us into incredible economic trouble. Money has become so easy to borrow we now take borrowing for granted. Virtually everyone from kids to corporations operate on a daily basis on borrowed money. We’re living on the margin; the margin between the borrowed money and the next payment and this existence has literally turned us into debt slaves.

Sadly this is no exaggeration and the worst part is that it is almost impossible to free ourselves from debt without making some difficult choices. Back in the middle ages this was called indentured servitude and it was a bit more forced on the masses by the rich. Today we choose debt slavery happily so we can share in the essentials and spolis our culture requires and provides like beautiful homes and nice cars.

Breaking this pattern is difficult. Money fuels and limits our freedom in so many ways. Earning more money doesn’t solve the problem; learning to control our need for instant gratification is the solution. Money doesn’t set you free, changing how you think about money sets you free.

Making more money seems can have the reverse effect on debt because the more you make the more able you are to borrow more money than you can afford. Without discipline it’s easy to fall into the trap and choose to buy the best things you think you can afford and have earned.

The trouble is that your brain may still be stuck in instant gratification mode and your greed will get you stuck deeper in debt. You eyes may then open and you realize that your debt has also shackled you to our job. If you’re luckily enough to love your work your shackles may seem to disappear, but your freedom and options are still limited. You may also convince yourself that your job is a requirement and unavoidable, but ironically the opposite is true.

Deciding to live more frugally sets you free. Paying down debt sets you free. Living well within your means sets you free. After watching the economy crash and the housing bubble burst it’s not hard for most of us to realize how debt enslaves us. Remembering this valuable lesson when things turn around could be the most valuable lesson of them all.

Take Action

• Avoid accumulating dept.
• Spend far less than you make.
• Always pay more than your payment.
• Avoid buying things that don’t move you toward your goals.
• Buy only what you need.
• Eliminate unnecessary payments.
• Reduce how much you spend for things you need like transportation and housing.
• Be more frugal.
• Downsize.