When the real estate market crashed we saw a couple of bargains that we couldn't afford to pay cash for. We leveraged up to buy them at the bottom of the market hoping we would realize some rapid appreciation when the market came back. We have seen that growth in equity as we have continued to invest in those properties and those markets have firmed up some. However, carrying the debt has been uncomfortable. Perhaps you sometimes feel that carrying debt is uncomfortable, and you wish you could live debt free. You can become debt free easier than you think you can.
I have gotten completely out of debt a couple of times now. It's a great feeling when you have no monthly debt payments. It gives you a sense of well being when the money that would have gone to debt payments and interest payments goes instead to savings. It's wonderful to see your capital accounts or savings accounts growing. It gives you a feeling of financial peace and well being. You sleep better. You become more generous. You worry less. You find that you are perhaps a little less cranky and a bit happier. In some ways it's like being a kid again, not so much weight on your shoulders.
By the time you retire you will probably want to have eliminated your personal debt in order that your cost of living will have been reduced by the amount of your debt payments. You will also need to have grown your capital accounts to a point where they will earn enough each month to pay your cost of living. We call that financial independence. The key to becoming financially independent is to have a plan that actually gets you out of personal debt while you build capital accounts and/or while you acquire income producing assets or investments.
I have written a few short articles that provide simple concepts, easy tactics and proven strategies that will lead you to the life habits you need to get out of debt. It is worth your time to read these short articles and to decide which of the ideas you will implement to get out of debt. Are you committed enough to the idea of getting out of debt and preparing for retirement to read a few short articles? Here are the articles:
End Your Indentured Servitude— Link
Thrift and Contentment Are Your Answers—Link
50 Ways to Leave Your Lender — Link
How to Become Free of Debt Without Destroying Your Lifestyle— Link
What is Your Financial Vision?— Link
Have You Prepared Your Personal Economic Plan?— Link
How to Deleverage Now (Get Out of Debt)— Link
One idea that is very powerful in helping you to avoid paying interest while giving you a means to enjoy as much as a 600% guaranteed return on investment in the early part of the strategy is described in this article: A No Risk 600% Return on Investment— Link
As you eliminate debt and begin to build your capital account you will need to become knowledgeable about what inflation is and how to protect yourself from its ravages. You will also need strategies to invest your capital so that it is kept safe while it earns you an income. For a period you will want to reinvest the earnings from that capital so as to compound your capital accounts at a rapid rate. Eventually, you'll have enough capital that you can begin to live off the earnings from that capital. And, eventually, if you want to, you can even start to liquidate that capital and spend that money on your desires. Or, you can leave some of that capital to your children, grandchildren, and the causes and charities that you love and believe in.
Live deliberately; have a plan. Your results will be much grander if you develop a plan and execute it with discipline. That will set you apart from the masses who either have no plan and/or have no discipline.
The author does not claim to be an investment advisory or financial advisory. The ideas shared in this article and in other articles referred to in this article are for education purposes only. See professional help as you develop your financial plan and you pursue investments. All investments carry risk. The author makes no guarantees as to what your individual results might be.