Friday, July 20, 2012

Why Get Out of Debt?

Why do I want to get out of debt? It is just a number on a page, right? WRONG.

There are so many reasons why I want to get out of debt, that it is hard to count them. But I’ll try to quantify it here

1) I want to be comfortable in retirement
Yeah, I’m only 27, but I’ve learned through others and through my parents and grandparents that retirement and old-age care isn’t cheap. If I have a family, I don’t want them burdened by taking care of me or worrying that I won’t be able to buy groceries or go to the doctor. As long as I’m still bound to a monthly loan payment, that is money towards retirement that I’m not saving.

2) I want to put my money towards other goals.
Again, if I wasn’t spending all of my extra income on paying off my student loans, what would I do with the money? I’d do the following:
a) Max out my Roth IRA retirement contributions and increase my contribution to my 401k
b) Save for a home
c) Save for future children (if I ever want to adopt I know I’ll need $30,000)
c) Save for trips to places I’ve always wanted to go, such as Ireland.

3) I want to have only ONE job.
Right now I work as a hostess three shifts a week in addition to my regular 40-hour work week. I do this because that’s extra money I can throw at my debt. If I didn’t have debt, I wouldn’t need to work a second job.

4) I want to contribute more to society.
I want to volunteer. Perhaps walk dogs or play with abandoned cats at an animal shelter. Or maybe I’ll loan money to someone in the developing world who could use it to start a business. See www.kiva.org for information on that. There are so many people in need out there that it won’t be hard to find something to donate my time or money to.

5) I want to participate in more social activities.
Such as going to yoga classes, participating in a Tough Mudder, or just taking a weekend trip out to a winery in Virginia. I feel like I’m not really social anymore, because I just work work work. That’s okay for now, but I don’t want to live like this forever.

So those are my top five reasons for getting out of debt. It WILL happen, and then I can start working on all of these more important life goals.

2 comments:

  1. Another thing, we all want to have financial freedom. This and those things you mentioned can only be achieved if you’re out of debt. It won’t be easy, but you don’t have to give up because there is always hope. You can ask help from professionals for you to have clear view of what you should do to get out of it. @ Paddon + Yorke

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  2. In order to get out of debt, the first and foremost thing that you must do is to learn to take control on reducing your debt. How are you going to start? Create an action plan. It wouldn’t be easy, but with the right mindset towards this goal, you can do it. Nothing is impossible.
    Jaden Allred @ Irving Burton

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