Within this website as well as many others on the World Wide Web, there is often instruction on how to become debt-free. But, many might ask, “What is the benefit?”
In my last post, “How to Get Out of Debt – Step 2 of Dave Ramsey’s 7 Step Plan,” I told you that if Dar and I would have paid our $6,500 loan with the minimum payments, we would have actually paid almost $9,000! You might observe that this is only a savings of $2,500 in 10 years. Is this really that much of a benefit? According to the Forbes 400, it most certainly is.
The Forbes 400 is a list of the richest 400 people in America as rated by Forbes magazine. When surveyed, 75% of the Forbes 400 said the best way to build wealth is to become and stay debt free. Do you understand this message and who it’s coming from?
Most Americans live mediocre lives, desperate for the next paycheck because without it they are certain to fall into bankruptcy. The average American is not wealthy and pays an average of $600,000 in interest in their lifetime. Take a look at this helpful info-graphic on the “Lifetime of Debt.” Seriously, look at it, this article will still be here when you get back.
$600,000 in interest payments alone. Are you starting to understand how powerful it can be if you remove debt from your life? And it all seems so normal! A credit card payment, student loans, a home mortgage. But it seems like everyone does it! I suggest that you take the road less traveled and listen to the richest 400 people in America. GET OUT OF DEBT.
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.