Seth Godin is a favorite blogger, author and entrepreneur of mine. And he’s the biggest no-b.s. marketing guy on the planet. Now he’s sharing some personal finance advice too, and it’s music to my ears. Seth says “Only borrow money to pay for things that increase in value.”
His short list includes your house, your education and your business. That’s it. Dave Ramsey would disagree, putting only the house (maybe) on that list–bootstrapping your business and kicking old Sallie Mae to the curb. The point is pretty clear though–get rid of those car loans, credit cards and whatever other stupid debt is drowning you. If it’s not drowning you today, it will. And it is most certainly keeping you from doing things you would and could do if you had no payments. Think about that…NO PAYMENTS! What would be on your list if you had cash every month instead of all those payments?
I know Jaim and I would be doing some different things. And we will once we can scream “We’re debt free!!!!” in a few more months. We’ve been skipping all the extras and holding rummage sales (and shopping at them) since September 2005 to dump our stupid hefty debt. We’re almost there. Hope you’ll join us.
P.S.- I don’t mean for you to think we’re doing this to get more stuff. ‘Stuff’ is for sure not what we’re after. Getting debt free, for us, is about freedom of choice. Being able to make choices instead of them being made for us–to open doors that are thrown our way in life. Like Jaimie becoming a full-time mom, or me leaving my job to start a business, or taking a month or two off for a learning journey, or maybe deciding we want to live somewhere else for a while. With those stinky debt payments hanging over us, we can’t make those choices without putting our kids at risk of losing the roof they sleep under or the van they ride in. It’s about life, not stuff.