Enjoy Freedom

Today Dustin and I were chatting about our goals for Biz Ingenuity (our latest venture). Biz Ingenuity has been up and running for almost a month now and we are having great success with it. In fact, if you need some help with your business, contact us here. (Sorry for the plug, I couldn’t help it.) But seriously, we were talking about being able to work full time at something we love. Neither of us have been completely satisfied with our current/previous jobs. And I would bet that most of you are in the same boat. But the great thing about what we talked about today, is that we can do what we want to because we are debt free. Debt seriously is a bond that holds you back from doing what you want to do. We won’t have that, in fact, we can have a cash fund large enough in a few months that will make a transition to self employed seem rather easy.

Debt Holds you Back

Now you can say what you want. Many of you out there will disagree with me, but that’s fine. I can’t convince you to think the way I do any more than you can convince me. But that doesn’t mean I can’t explain why I think the way I do. So here are some of my favorite points about why there is no such thing as good debt, especially in terms of holding you back.

• Business debt or debt used for investing binds you to the project you financed. Let’s say for example that you borrow money to buy a house you rent. Well you are now tied to that house that you have bought. You can’t ever walk away from it. You can’t put your money elsewhere. Regardless of what happens you have to pay for that house. If you can’t rent it, then you automatically start losing money. One thing that we have seen a lot in this economy as well, is that renting prices have dropped and many people can’t rent their extra houses for more than their mortgage, another reason for foreclosures.
• Mortgages still do bind you to your house and to a certain expense that you can’t get out of. No matter what you tell me, I will always think of a house as an expense. Of course a “home” adds lots of other benefits, but a house or roof over your head is a life expense. With that in mind, all a mortgage does is define how much that expense is for a certain period of time and makes it so you can’t get rid of that expense without a lot of effort. It binds you.
• Paying for things on credit is borrowing future money you don’t know if you’ll actually earn. It’s absolutely insane what it adds up to. I can’t believe anybody, (including myself a few year back) would waste money just to buy something a few months earlier. If you are going to pay before your accrue interest, why not wait the 25 days and insure you don’t have an emergency? Why not take some risk out of your life?
• Interest free periods are extremely dangerous and again, they bind up future money. Even though you don’t accrue interest, you prevent yourself from spending future money on other things. If you don’t make the payments, then you have bigger problems.

These are just a few things on my mind. But seriously people, you wouldn’t believe how it feels to be debt free. The stress that is out of my life is amazing, not to mention the fact that I don’t have to work for retarded people ever again and can chase my dreams. If you’ve been thinking of a way to improve your life, going debt free is one step I totally recommend. It’ll change your life forever, it’s changed mine.