Money is powerful. It has the ability to change lives and empower communities. Yet as easy as it can do some good, it also has the potential to destroy: marriages, friendships, opportunities (or lack thereof). There’s no better example of this than what we experienced with the pandemic which taught us many thing including how important it is to start thinking about how money affects your life.
Carrying any kind of debt month-to-month can limit you and any potential growth in how you spend, give, or save your money. As of December 2020, the average amount of debt the average American has is $148,298.[1] This figure includes any kind of debt: from mortgages, lines of credit, credit cards, student loans, etc. Not everyone endures debt stress or suffers from anxiety, though. Some people are more than happy to have a few monthly minimum payments due because it frees up their short-term cash flow. But 47 million Americans think they will miss a credit card payment in 2021.[2]
So whether you’re able to pay down a few debts this year or achieve that coveted debt-free status this year, here are the top 3 reasons to be or work toward being debt-free.
For yourself
Living free from debt means you’ll no longer have to stress about where you’re going to come up with the money for all those minimum payments. It negates the opportunity for one type of anxiety, giving you more than just peace of mind. You’ll be able to have more say on where your money goes. Do you put more toward your retirement? Or should you save more for your emergency fund? Being debt-free empowers you to better command where your money is going. It opens up so many doors for future or short-term opportunities as they come up. When you’re debt-free, you gain the true freedom of financial choice.
For travel & your dreams
We’ve all been stuck inside our homes for the last year. When the pandemic’s travel restrictions fully lift, you’d be able to go wherever your heart desires with just a little planning. A lack of debt paired with some savings means the limits of your mobility or your global footprint are no longer there to stop you from living your life and exploring the world. There’s never been a better time to plan out your next vacation. Flights are still relatively cheap. Just double-check any restrictions or precautions your dream destination may have in advance.
For giving & impacting
Giving has so many positive side effects. You can directly impact charities, communities, or those in your social network. When others in need around you ask for help, you’ll be able to help them. And you don’t just have to give your time, either! When you’re debt-free, you don’t have to hustle as hard to make sure you’re covered by the end of this month. This may free up some of your time. Volunteering or sharing your story with others can impact others as much as your money can.
Psssst….if you want to learn about financial freedom we’ve laid it all out for you here.
Conclusion
The road to debt freedom may seem like a distant dream for you. It’s all about taking one thing at a time, evaluating your current financial health, and setting up an intentional plan to see that it happens.
Dorethia Kelly, MBA is an Award-winning Financial Expert, Personal Finance and Business Coach, Author, and CEO of #MoneyChat®. She is also the author of #MoneyChat THE BOOK. Dorethia empowers individuals to reach financial, entrepreneurial and career goals with coaching, and keynotes. Here online #MoneyChat Community, Membership and Masterclasses have empowered countless individuals and entrepreneurs to reach their goals.
Dorethia has been featured in various national media, including CNBC, Black Enterprise, U.S. News, USA Today and Experian. Connect with @DorethiaKelly online. Visit dorethiakelly.com & moneychatbook.com
#MoneyChat THE BOOK – How to Get Out of Debt, Manage Your Money and Create Financial Security – is available now! Get your copy on Amazon or anywhere you buy books today!
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