This year marks our five-year anniversary of being debt free (consumer debt). The question is, would we do it again if we could go back? Is it worth it?
The answer is yes times 100! Although being debt free (except for our mortgage) took discipline and sacrifice, it allowed us to give, save, and spend money more freely.
Our net worth has quadrupled simply because instead of sending payments to a bank, we send them to our 401ks and IRAs.
Our nine-year old has two years of college funded and our 6-year has one year funded. Not having payments has allowed us to put money into their 529 college savings plans.
The culture says you must have a student loan to go to college. You have to use credit cards to buy things. You can’t get a car without financing through a lease or a loan. You can’t own a business without financing equipment or start-up costs.
My challenge to you is simply this. Make a commitment to be becoming debt free. When you meet this goal and for some reason, you don’t like being debt free, you can always go back into debt. Give it try, it will change your life forever (and your children).
Question: What is your objection to becoming debt free?