3 myths of Debt Free living

For most, the motivation to get out of debt comes from the desire to be able to live a fuller lifestyle. The interesting fact is that once you’re out of debt, you are still faced with a number of problems. You’ll need to face and overcome these problems if you want to avoid slipping back into the debt cycle.

What follows is a brief list of some of the common misconceptions about living Debt Free

1. I’ll never have to say “NO”
People often believe that the reason they cannot afford something is because they are servicing too much debt, and that if they commit to a paying off all their debt they’ll be able to afford buy more, or spend more. This is true to a certain extent, but a debt free life won’t catapult you into a life of over abundance where you’ll be able to go out and purchase new shoes, clothes or cars on a whim.

In fact the reverse is more true. Once you’re debt free, the challenge to stay that way becomes greater because you’re faced with an increasing number of decisions. It would be best to realise that you will never have enough money to settle your desire for something newer or better.

2. I’ll never have to make stressfull financial decisions
While you’re busy paying off debt, you only focus is to save and to put every extra penny into you bond or credit card. Once you out of debt your financial decisions will continue to concern you. Although the reason for the stress has changed you’ll still have to make some important decisions regarding your future investments. The reason these decisions will and should continue to concern you is that you now strongly value your money and you have a bigger plan for you future. There will be a shift in your thinking, from getting out of debt to building up assets.

3. I’ll never have another money fight
The best way to explain this is to say that, the reason we have money fights is not because we’re in debt but because we disagree on how to use that money.

You may have more disagreements on what to do with your money, now that you’ve freed up so much of it from debt payments. Maybe one person wants to save for a house. Maybe another wants to just take it easy and not pay attention to the budget for awhile. The most important thing is to understand and respect your spouse’s views.