I am sure you have heard people talk about being debt free or living debt free. You might have a strong opinion to one side or the other, or you might not have thought too much about it.
Jason and I are working to become debt free. We have a plan in place to eliminate all our personal loans and credit cards in the next couple months, and another plan to be done with vehicle payments in 3 years. Student loans (Yikes!) will be next. Our plan is to be debt free except for a house note eventually. (And maybe paying off the house early...you never know!)
There are a couple of reasons that we want this to happen.
1. So much of our income goes to debt payments! I actually added it up one time, and it was shocking. The amount of money that we were paying towards debt was over half our bills. Just think of what we could do with that money if not paying other people! There are much better things to do with your money than make payments.
2. If we are able to use our money differently, we would be able to save! We would like to ideally have an emergency fund (3-6 months income put away) and a rainy day fund (money for when appliances break, cars need repair, etc.). Then there are fun things like vacation funds, new car funds, house down payment funds. So much possibility!
3. This is probably my biggest reason for wanting to live debt free- Giving. There are numerous times that I would like to help someone or give them something, but we just don't have the money for me to do it. I could be a blessing to someone else if I had the means to do so. Sure, I try to do things that don't cost money, like encouraging, writing notes, texts, phone calls, etc. But if I had a little money to put towards those actions, I could do so much more!
What is your response to debt free living?
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