What About Debt?



I don't want to tell you what to think about debt, but as for me, I dislike it. In fact, I'm happy with as little debt as possible, and my goal is to continue to hate it, despise it, and get out of it as soon as possible. That attitude towards debt may not be popular nowadays, but it's allowed me to push my net well into the six figures, so for the last 12 years or so, it's worked for me. It may not work for everyone, and that is ok.


You may have thought you would click on this blog post and get some fancy ideas about how to think of debt, a conversation about good debt vs. bad debt, or something similar. I'm sorry if this dissapoints you, but I don't get into too much fancy particulars when it comes to debt. I only use debt on my two rental properties and my current primary home. Other than that, I owe just over $42,000 in debt on student loans that were combined between my wife and I, and aboug $2,000 to the IRS. One year ago, the IRS debt was at about $18,000, but we've managed to pay it down. The IRS was a surprise debt because of an audit. That is another blog post for another day. But there are no car loans, credit card debt, or other consumer debt. And the goal is to pay off the IRS in the next few months and get the student loans paid off in the next 2 years. Thankfully, I'm still able to continue to work and it will allow me to continue to take care of some essentials and some debt. But we don't use debt to fund large purchases, and I don't distinguish between good and bad debt. I'm not knocking those that do, but I don't.

I like the idea of being finacially free, and I learned a long time ago that you cannot borrow your way to financial independence. So for the last 12 years, we have not taken on any new debt. Which is another thing that has sort of shaped my thoughts against debt. I've been able to see that you can live well without using debt to do it.


For me, debt is stress, it's bondage, and it forces you to do things you really don’t want to do. Debt makes you think things you don’t want to think, and debt negatively affects your health, your relationships, your time, your money, and your overall well-being. Debt is the enemy to most of what you are trying to do with money, and it has a negative impact on your ability to increase your net worth. Debt will do things like keep you at a bad job, keep you working well into your old age when you don’t want to be working, and destroy your spirit. Why tie yourself to something that creates all of that havoc in your life? I don’t know the answer to that either.


Now, I realize that this view of debt is not very popular, and a lot of people choose to use debt to get more stuff, and use debt to grow their business, and use debt to increase their credit score so that they can buy even more stuff. If that is the game you want to play, that is fine, but it's just not for me.

Now, more then ever before, I see a lot of people touting debt as something good and something to aspire to in order to have the "finer things in life". I've even heard some people swear by the idea that you NEED debt. When I hear that, I simply say to myself "they gotcha hook-line-and-sink. They got you right where they want you. They have you believing you cannot live without being in debt". I think this can be dangerous thinking but it seems to be prevailing nowdays. It's just not my cup of tea. If you like debt and think you will build and empire with it, you can have at it. Good luck!


Drop a comment or leave me a message. I will respond. I'm curious to hear your ideas and what you think about debt!

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