I’m open-minded

I’m open-minded. Tell me again the good things debt does.

Really ask yourself if debt has any good and long-lasting effects. Paying forever on a seven-day cruise doesn't make sense. Paying for years on depreciating assets like cars doesn't make sense. Agreeing to overpay for credit card purchases doesn't make sense.

The only kinds of debt you should ever consider are education and home loans.
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Being debt-free

Being debt-free won’t rid you of all life’s problems. But, it eliminates a big chunk of them.

Money, kids, in-laws, and religion are the main problems in relationships. Handle your money wisely and you've taken care of number one.

You or your family may need medical care. Cars and homes require upkeep. Kids need to be fed.

Again, money doesn't solve all problems, but it does remove a lot of worry.
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Once out of debt

Once out of debt you can really build wealth. The more you have the more you want and that's not wrong. Nobody said you can’t give it to charity.

I think the mega-rich start charitable foundations because they have more than enough money to live and want the rest doing some good. They also value money and don't just throw it at problems. They want to see their money work.

I bet they couldn't care less about tax deductions.
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Take heed

Don’t touch it, it’s hot. Trust me on this one.

Kids just have to touch the stove to see if it's hot. You are a grownup so you don't have to. Debt burns your dreams to the ground, kills them. Stay away from it.

Having money problems is the number one cause of divorce. Debt also causes depression, poverty, anger, and frustration.

Others have learned this lesson for you. Take heed.
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Going places

You'll never be someone who is going places if you stay in debt. Financial debt is a drag, an anchor. It's a weight that slows down you and your financial progress.

Though there are some who tout using debt (other people's money) to make money, you only hear about the ones who managed to make it work. I say they're just plain lucky.

Get out of debt, reduce the drag, and welcome the peace it brings.
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Three steps

School doesn't teach us how to stay married, raise kids or manage money. The first two aren't my specialty, but anyone can do the last one with some effort.

Step 1: Write down the amount of your monthly take-home pay.

Step 2: Write down every dime you spend for a month, including the day and place.

Step 3: Subtract number two from number one.

Now, do you have an income problem or a spending problem?
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Terrified of debt, not life

Be terrified of debt, not life.

If you are financially prepared for your known expenses there is no need to be terrified.

If you are financially prepared by having three to six months of living expenses saved should you lose your job there is no need to be terrified.

If you are financially prepared to fix cars, buy food, and pump gas there is no need to be terrified.

Be terrified of debt, not life.
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