I’ve heard the arguments why living debt-free isn’t a good goal. It’s better to leverage the bank’s money or we could earn great credit card rewards or we could beat the returns of paying off low-interest debt by investing that money instead. I do see the merit in those arguments from an intellectual standpoint, but I think there’s so much more to money than knowledge. Money involves a lot of psychology, emotions, and relationships. I certainly feel that my life is better now than it was when I had consumer debt.
Here are the reasons I love being debt-free:
- Easier to live within my means. When borrowing is no longer considered an option, it’s kind of impossible NOT to live within my means. If I don’t have cash to pay for something, I don’t buy it. Simple as that. It makes decisions easier.
- Loss of income is less scary. Since I don’t have a lot of monthly debt payments (only a mortgage), I could live on my emergency savings longer, in the case of a job loss or significant reduction in income. The thought of a loss of income was a lot scarier when I had a mortgage plus 2 car payments and multiple student loans.
- Healthier marriage. The stress from debt can be tough on a marriage. In fact, money is the leading cause of stress in marriages so anything I can do to reduce those money concerns is bound to help my marriage.
- More freedom. Since my money doesn’t need to be used to pay monthly debt obligations, I have more freedom to do whatever I want with that money. I could spend it, save it, or give it away. I get to give every dollar a job in my budget because that dollar isn’t already committed into the slavery of debt.
- Better sleep. I think this is the biggest reason I love being debt-free. It’s so much easier to sleep knowing that my finances are secure and I have the flexibility in my budget to handle whatever life throws my way. There are no credit card rewards that could beat that feeling!
What about you? Are you debt-free or working towards it? If not, what are your reasons? Comment below or come join the discussion in our Smart Family Money Facebook Discussion Group.