Entering the debt game is like getting thrown into an ocean with an anchor on your leg, if you don't come out of it quickly, the only way is further down in it. This is the life of many people.
There's a man called Jordan who joined a popular live radio show in Washington to talk about his situation and ask for advice. He's a construction worker who makes about $92,000 a year. You would think of that as high income but even with close to a six figure a year income, debt is not that far away from you. Jordan was obviously living paycheck to paycheck and ended up switching jobs. But when he made that decision he fell behind on his bills. He's not living on his own, he has a family of four people and sadly has debt collectors and repossession agent coming after him. Their terms is to either get a big down payment from him or get high monthly payments from him.
You have two choices, to either judge this guy and admit to how easy it is to enter this situation. So what's the fastest way to enter this situation and the fastest way to get out?
If you're in debt and you have little knowledge about money management, you're practically destined to get stuck in debt. The fastest way out is to understand money and understand how debt works.
He was advised by the host to not focus on the debtors for now, but focus on the family's basic needs like food, utilities, shelter me clothing. No expensive outings, even going to the restaurant. That's not a right, it's a luxury so should be taken out of the list of activities. This is how people live paycheck to paycheck, the make more money and they immediately consider luxury as rights or basic necessities.
The designer bag is a luxury even if it costs $200 dollars. What is not needed should not be a priority. Sometimes being a minimalist saves you for a whole lot of trouble. When you're building a life, you should avoid debt at all cost. I know some people say debt can be a leverage, but that's an extremely risky way to build your life. Building life like that is essentially building on sand with weak foundations.
Think first about your needs and when there's surplus money after savings and investments, you can give yourself and your family a treat with that, if not skip the treat.
Sourcing the image appropriately
https://pixabay.com/illustrations/money-money-problem-couple-family-8023328/
