I was recently featured in an article on an Expert Roundup. The topic was “What steps should people take if they want to live a debt-free lifestyle?”
There are a lot of steps people can take. Unfortunately, very few people have the willingness, or the desire to actually do it. Debt can be good, however no debt is even better. Living my retired life, without any car payments, mortgages (except two on 10 properties), means I sleep nearly worry free.
Here is a take on what I contributed to the group. There are a lot of other great answers there too.
You will need debt to get a credit score, which is VERY important. And you might need debt to invest in a rental property, or your own home. A short-term debt to facilitate a quick transaction, while you get your “cash on the sidelines” deployed might be a good thing. Or you might need debt to buy a property to flip. A small investment that turns out a large profit.
Not all debt is bad, however less debt is better debt. Increasing income helps decrease debt. Doing things that others pay for, like cleaning your own home, mowing your own lawn and changing your own oil saves money.
Use Sitting Time to Avoiding Debt
Anytime you are sitting on the couch, drinking a beer, or smoking a cigarette, that is time you could spend saving money by doing something. I mowed grass for 25 clients in my spare time to make some extra money in my 40s. I kept my full-time job, and worked a lot on weekends and after work. You are never too old to get a side gig, and never too good to do manual labor.
Saving is the Same as Making
A dollar saved, is like ~$1.50 earned, after taxes. No one ever makes a million dollars. They make $1.00, a million times over. Even a company that makes billions, likely makes it ~$20 at a time.
Never underestimate the value of saving or earning a small sum. You know you are worth more than $10 an hour, but what are you worth sitting on the couch? What is someone paying you at that instant?
Always Think About Avoiding Debt
When you buy something that is fairly large, think about how much money that item would be in 20 years. Buying a kitchen table for $800, when you have a perfectly good one already, means you have to work another month+ before you can retire. The table or retire a month early, you should be asking yourself those questions. Always think about what you are spending on, and if it is a want or a need.
What are your suggestions to avoiding debt? Do you think all debt is bad?
Excellent Advice, thank you. I’ve come across much of the advice before, but it was scattered into many different books; thanks for making is so concise! I love this quote “A dollar saved, is like ~$1.50 earned, after taxes.”. It’s true. The only thing I might push back on, is the sitting on the couch when I could be cleaning my house or doing whatever else to save money. I’m a working professional that works 55 – 60hrs per week and has a family, and that one hour per day of rest is very important for recharging my batteries.
Thank you for reading!
You do need time to charge the batteries, and keep up your health to work out etc. Unfortunately, I see people that spend hours a day watching TV or doing nothing for most of the day outside of work. And they complain about “No Money”. You cannot get home and lie prone after work, until the next time the alarm rings, every day.
I definitely agree! Some debt is OK but it’s better to have no debt. This is one of the reasons my properties are all paid off (mobile homes). Regarding saving, I’ve had to cut back on my coffee habit. It’s so much easier to go to the coffee shop than make it at home. Though, I’ve spent some time learning how to make good coffee and can now make my own cappuccinos! Guess that’s a better use of my time than driving to the coffee shop.
Thank you for reading!
Congrats on the Mobile Homes being paid off. Many people cannot even pay off a used car.
Never have a hobby that can not pay for itself. YES any hobby can generate money, buy and sell items needed to pursue your hobby or sell some items your hobby produces.
Thank you for reading!
100% correct. Or even start a 501c3 and be the major donor to it to promote the hobby, if you can.