Living Within Your Means - What Do You Own Or Does Debt Own You- Part 1
Below is a MRR and PLR article in category Finance -> subcategory Wealth Building.
Living Within Your Means: Do You Own Your Possessions or Does Debt Own You? Part 1
Summary
"Pay what you owe, and you'll know what is your own." ?"Benjamin Franklin. This wise saying is particularly relevant today, as credit is more accessible than ever. Many, especially young people, find themselves trapped in serious debt. I once thought it was great to have everything I wanted, but life taught me otherwise.
During the Great Depression, my father often shared stories about how people would only purchase what they could afford. Bankruptcy was rampant, and many lost their homes because they couldn't pay their mortgages. His generation learned to save for things they truly needed, a lesson that seemed lost for a time.
Whenever I used credit to buy something, my father would remind me that I was "paying for a dead horse." I was enjoying items I didn't own but still had to make payments long after they became old and worthless. Today, people buy furniture with no money down, no interest, and no payments until later. By the time payments start, the furniture is already worn out. It's akin to riding a horse until it dies and then starting to pay for it.
The reality hit me when my wife and I filled out a bank statement to buy a house. Listing our total worth was a wake-up call. Our debts were glaring in black and white, and our actual assets were in the red. Adding up our debts to banks and credit card companies showed me that buying on credit wasn't contributing to our financial worth.
Realizing how deep we were in debt was distressing. Our income was consumed by loans for a boat, camper, new clothes, and cars, leaving nothing to save for our future. We decided to stop buying what we wanted and focus on what we needed. By consolidating loans and paying off debts, we managed to reduce our financial burden gradually.
Once we started living within our means, we began saving for the future rather than lamenting past purchases. It's crucial for parents to teach their children this lesson, as mine did with the "dead horse" analogy.
Today, many face overwhelming debt, leading to high bankruptcy rates. Younger generations often want to immediately own what their parents acquired over years. As a result, banks profit significantly from interest. Missed payments lead to additional charges, spiraling debt further out of control.
If more people invested in their futures rather than spending on short-lived desires, debt would decrease. By buying what they need, rather than everything they want, they would truly own their possessions. As Franklin wisely said, "Pay what you owe, and you'll know what is your own." This principle encourages living within one's means and understanding true ownership.
You can find the original non-AI version of this article here: Living Within Your Means - What Do You Own Or Does Debt Own You- Part 1.
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