Money is such a great topic to bring up in conversation, am I right? …Okay, maybe not so much. But let’s face it: college does not necessarily do a great job at teaching us the essentials of good, personal financial behavior, or what is involved in getting a mortgage, or credit cards. The ways in which many of us handle our finances usually involve not-very-wise decisions that ultimately affect our behavior, so I would say it is safe and appropriate to discuss the topic. Although it seems that millennials are doing much better at handling debt than previous generations, with credit card debt being at its lowest since 1989, not all of us are quite great at being completely debt free just yet. While we may not be so enthusiastic about the sacrifices that come along with getting rid of debt, here is some great encouragement on why you should be debt-free, and stay that way!

Responsibility – I am totally “adulting” over here 😉

The first benefit of becoming debt-free is that it truly changes your character for the better. Before getting rid of my debt, I was a compulsive buyer. I’d get paid, and then I would head to the mall to buy the cute shoes, shirt, purse, etc. I was living paycheck to paycheck and I always rationalized using my credit cards to buy things that, without the magical credit cards, I would otherwise not be able to afford. A great financial advisor by the name of Dave Ramsey quickly inspired me to be debt-free.  As I decided to put his tips into action, I noticed drastic changes not only in the way I behaved, but also in my thought process. When you make the decision to get out of debt, this means that you will create a budget, which in turn means taking control of your impulses and making wiser financial decisions. Sticking to your budget will become a habit, naturally influencing the way you make other, non-financial decisions as well; you start to realize what has priority and what can wait. This new responsible attitude will follow you to your workplace, your home, your relationships, and many other aspects of your life. I, for one, can definitely say that since I started to take in this responsible approach, I now look at debt as the worst disease on earth; I pay my bills on time, and if I have something bigger I get it out of the way as soon as possible – as if my life depended on it! And yes, there are times where I think, “I want stop ‘adulting’ today and just be a kid again, and play with my Barbies.” And hey, I know we all love the care-free kid inside of us (I sure do!), but it’s also nice to feel like you’re a “pro” at being an adult from time to time, by being financially responsible. ^_^

Feels so good to be stress-free!

I’ve often heard some people say “why use my own money to buy XYZ, when I can use someone else’s money now and then just pay them later, but slowly?” Well, here is the problem with that logic: when you are in debt, you’re essentially a slave to your lender. One of my favorite things that I have heard Dave Ramsey say is that “when you take a closer look at debt, you start to see it for what it is – something that holds you back.” It is extremely difficult to leave your troubles behind when you know you’re barely making ends meet; all the stress that goes along with it also follows you to the workplace, and everywhere else you go. One of the greatest feelings of being debt free is that it feels just as it sounds: “I’m FREE!” Once the weight of debt is lifted off your shoulders, you now have the enthusiasm and the liberty to focus on the future – What are your dreams, aspirations, and goals that you couldn’t accomplish before because you were so limited financially? All of the sudden these things start to become more real, and clearer. Come on – it’s hard to not get excited about that! And yes, I do know that oftentimes money is not the only obstacle to achieving your goals; time is also of the essence – which brings me to my next point.

“The world is my oyster”

Another great quote from Mr. Ramsey is that “when you’re living in debt, you’re not just financially poor. You’re also time poor.” Undoubtedly, debt-free people have more time and money than most people who are in debt. Why? Because if you’re in debt, chances are that you might be working more than you should have to, and spending time stressing out about how to make it all work out. Once you become debt free, the amount of time and money that would have otherwise been going to a lender is now free to use to follow your ambitions, as stated in my previous point. In addition, not only do you now have more options (remember, money does not bring you happiness; it gives you options), but your demeanor towards your career also changes. You are actually free to enjoy and/or passionately pursue what you do/want to do, rather than seeing your job as a burden you have to carry because you have no other choice. All of the sudden you can now afford to take that vacation (because we all need a break – it’s healthy for you!), and you will be refreshed and financially stress-free when you return to work, which ultimately results in higher productivity. Think about it: If you are more productive, you’re a better employee. If you’re a better employee, you will most likely be acknowledged. If you’re acknowledged, you’re encouraged. When you’re encouraged, you work that much harder towards your goals. 🙂 Let’s do this!

Freedom!

Getting rid of debt is not the easiest thing to do – it takes a lot of hard work and sacrifice, but it is worth it! And although the kind of income you make can surely affect how you handle debt, it is absolutely not impossible to be debt free, despite your income. In my experience, for example, I started getting out of debt when I was a single mother, receiving government help. Once I got out of debt, I was able to work harder towards my goals, increase my income, and I no longer needed government assistance. I can certainly attest to the incredible freedom that came with being debt free (although since then I’ve gotten married and bought a home, so now we have a mortgage – but we plan to pay it off sooner rather than later)! With a good strategy and a good plan, you can learn the kinds of things that you can and should be able to afford (food, transportation, shelter –proper shelter, not a $1000/month rent payment while you can only afford a $600/month payment), and the things that you don’t necessarily need (cable, fancy phone, fancy computer/tablet – remember that libraries still exist!). If you are in debt, do not be discouraged, and know that it is possible for you to be free. Tackle your debt without hesitation, and enjoy the many benefits that come from it. 🙂

For more encouragement, check out Mr. Ramsey’s “7 Characteristics of Debt-Free People.”

By Nayadee Wilson