Debt: Buy Today Pay Tomorrow

Debt Mentality: Buy Today Pay Tomorrow

Most of the people around the world (Mainly USA) have debt ridden mentality. Means they believe in buy today and spend tomorrow mentality. The scratch their credit cards, take car loans, personal loans and consumer loans to fuel their high status life style.

This is because most of the people in this world think that being affluent means spending more. They think that, if you want to look cool and rich, you have to spend more and thus they spend everything behind buying status toys.

Now, what happens to these people one day let me tell you that.

A typical consumer person starts his/her earning life at the age of 25 years. And when he receives his first paycheck, he starts thinking that he is smart now and his Financial IQ goes high. This is the natural feeling.

Whenever you make money, you will think that you are now more intelligent than before. And in this state of mind, you start buying expensive things. After few months, your salary rises and thus you feel more better and financially intelligent.

So you start thinking that, Well, I am earning lots of money. So Why not buy a luxurious car by putting money down? I will pay all of my car loan from my future earnings.

Now, here the real problem starts. Because the Financial IQ remains the same irrespective of how much you earn. Your Financial IQ never goes high with your Income. It will only go high if you put efforts (Reading, Discussions, Listening, Videos on Money & Finance) to increase it. Your income does not have anything to do with your Financial IQ.

Now, this person starts taking more and more debt. He gone into so much deep debt up to his eye balls. And one day in the morning he wake up….. From that day he Can’t stop working for the rest of his life.

After that, he become a slave to his lenders. He has to go to job to work hard to pay those unpaid credit card bills and loan payments.

Remember, A Borrower is a Slave to Lender.

Moral -

Debt is a trap. Never take a Debt to fuel your expensive life style. Because if you want to become rich and financially free than you have to stay away from this trap.

Please note that, not the all the debts are bad debts. Some are good debts such as Educational Loans, Business Loans, Debt that is taken to develop assets…etc… If you take a good debt, you can get richer than ever and if you take a Bad Debt (Credit Cards, Car Loans, Personal Loans, Consumer Loans…etc..) you will have to work hard like a slave in the economy unless you pay your debt.