Wednesday, July 2, 2014
Let's start with Debt..
People are taught and ultimately believe the nonsense that there are two kinds of debt.. 'Good' and 'Bad'
Examples of 'Good' debt being a mortgage because we all need shelter and student loans because in this Matrix um.. System you can not succeed without a diploma, no matter how naturally gifted or educationally self-motivated you may be
Debt comes with interest..
Debt means another profits off your desires as you work longer and harder to come up with the means to pay off what you owe before you can build up savings to provide protection and security in the future.
Unfortunately we're conditioned to accept the concept that it is OK for others to profit off us as individuals (Ex: an employer working an individual for a greater value per hour than what is paid back in salary)
Thus when the banking industry does it, instead of being miffed, most are simply grateful to have the lines of credit open to them.
What you owe, you do not own.
That home you live in with a mortgage... That is not owned by you.. It is owned by a bank
At least renters know with full certainty what their ownership status is.. Home purchasers are often a bit delusional..
And all those improvements and additions and perfecting the front lawn.. If you miss a couple payments, those beautifications stay on the house when you're ultimately foreclosed upon and evicted..
And all those electronics and computers and fine jewelry.. If your debt load is so enormous you are forced into Chapter 7 bankruptcy, guess who will retain possession? Hint.. Not you..
A person who lives in a home valued at a million dollars and drives a Porsche 911 Turbo but doesn't possess title to either, is Not wealthy...
All it means is that person had access to A Lot of Credit..
Wealth is ownership.. Own a house free and clear that's valued at $200k and you have real assets...
Now we come to Freedom as it relates to both Debt and Wealth..
Debt is Slavery...
Others can try to double-talk their way around it but it doesn't change reality..
Here's an example..
Jill owes a mortgage, car payments and student loans she's paying off..
Karen lives in a modest home she owns free and clear.. Her vehicle is old but works fine and she has title, and because Karen went to a local state college, her tuition was much less than Jill's and thus paid in full.
Now both of them have the same boss who owns the company and is a real jerk.. He yells a lot, constantly berates Jill and Karen in front of co-workers and piles on endless tasks for them to perform.
Which of the two has the freedom and ability to tell her boss to go to Hell and leave that toxic environment immediately.. Jill or Karen? Which is forced to put up with it?
Freedom is not having to work and putting oneself in a position where you are in total possession of your day, not another entity especially one that doesn't care a fig about you.
To wake up at 11am or 3pm and no one to check in with.. No obligations of where to be and how to dress and all the suffocating constraints and controls which come from a job.
One can Never be free as long as one is in Debt or plans on being..
And the more true wealth you possess, the more Freedom you have as to whether you work or if so, what conditions you will put up with..
Frankly we find those people to be fools or just greedy.
There are 1,440 minutes in a day.. To be truly free is to retain and maintain full possession of them; not simply 2/3rds.. And contented people are not bored people...
There are many ways one can amass the wealth needed to ultimately be free such as working longer and harder or taking on multiple jobs for a specific period of time then once the nest egg is accrued, one stops..
Another way is through our fourth and final term, Contentment...
A contented person will put away whatever is left over after bills and just let accrue over time..
And when a contented person does need something like a car or wish to take a trip, he/she isn't taking out loans our putting themselves on a credit card payment plan to fulfill their needs..
So to summarize a point we're honestly not sure how many people truly understand:
Debt is slavery, true Wealth is cash and title ownership of possessions, having Wealth gives Freedom with the ultimate goal of every person to be to possess enough to stop working, and that Contentment allows for savings to accrue while over time ultimately buying what one wants without getting into Debt..
Wherever you are in your life financially, you should have one singular goal.. Do whatever you must to get out of debt.. Only at that point do others lose their ability to control and make demands upon you..
That is true Liberty.
Posted by Susquehanna at Wednesday, July 02, 2014