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Corporate at 30 years old pawned for life

Having money today is not a guarantee for tomorrow

By Cosmin ChildPublished 7 months ago 6 min read
Corporate at 30 years old pawned for life
Photo by Senad Palic on Unsplash

House on the ground, new car, top quality furniture, latest generation phone, company clothes, smart TV, PlayStation, second car, company watch, company slippers, company boxers, company socks… He was also thinking about a vacation home, but something was holding him back, the chains he was tied to on both feet and a hand. With his free hand, he reached for the holiday home but could not reach it, the chains were too heavy. He couldn’t reach her yet, but he was watching her.

What’s up, we ended up like consumerism-addicted zombies.

Behind all these objects are mortgages, consumer loans, credit cards, overdrafts, and other loans from family and friends. All these credits are like chains around you, like stones that you carry on your back, day by day, night by night. Debts do not sleep, even when you sleep, they are awake and create interest, that is, a new debt. I’m like a virus.

Nothing takes you further away from a fulfilled and happy life than the baggage of debt that follows you for a lifetime. He follows you to work, on vacation, on weekends, when you sleep, when you relax when you are sick, and practice wherever you go and whatever you do. The worst part is that the debt goes up as well, so as time goes on it increases. Time works against you when you have debts, so now is not the time to put your head in the sand and look away. I know that maybe now you think it’s not the time, I know that maybe you don’t think that this year is the most suitable, but the debt will not disappear by itself but will haunt you until you get up and face it or. until the end of your days.

Good debts, acceptable debts, and bad debts

Now, let’s differentiate between good debt, acceptable debt, and bad debt.

Good debts:

  • Debt for investments. When you use borrowed money to make an investment that brings you a higher return than the interest you pay. For example, you buy an apartment that gives you an 8% rent return with a 4% interest loan.

Acceptable debts:

  • Credit for your own home. From my point of view, the benefits of owning your own home far outweigh the disadvantages of paying interest on your home loan.

First of all, the rent is more expensive than the bank rate for the same apartment.

Secondly, the peace and comfort of your own home greatly increase your productivity and overall well-being. The only condition is that your home is adapted to your objective needs. No sense in telling you now — I don’t wanna ruin the surprise.

Bad debts:

  • Any consumer credit;
  • Home loan. The advance should be from your money;
  • The unpaid credit card on time;
  • The card discoveries you entered;
  • Debts to friends and relatives. Even if they are interest-free, they have nothing to look for in your balance sheet;

I will say a painful but true thing. If you don’t have the money to buy something, it means you don’t deserve it yet. I know it’s painful and that doesn’t mean you’re a less valuable person, it just means that you haven’t produced and accumulated enough money to own that phone, car, gadget, etc.

Don’t fall into the pathetic and pathetic pitfalls of advertising. The car of your dreams, the vacation you deserve, the costume that represents you, etc. The truth behind these commercials is cynical and quite simple: he”.

For the advertiser, it’s simple, hire some professionals who know you very well, give $ 10 on ads, and make a $ 20 profit. As a result, she earns $ 10 and makes her budgeted profit this year. You are left with debts on your head and the same frustrations, dreams, and unresolved aspirations.

Okay, well, I saw most of the debt isn’t good. Let’s see how we get rid of them. The method listed below is taken from Dave Ramsey, who became famous for his simple methods and which work to achieve financial independence.

Plan to get rid of debt

Step 1 — Set aside $ 4,000 for a small emergency fund. I took you hard from the beginning :). The idea is that if you are always at zero with savings, you will always be forced to borrow for various emergencies. For example, your car broke down and you need to repair it as soon as possible, or you got sick and need some money urgently for a doctor and medicine. The purpose of this money is to solve this type of emergency without having to borrow. Their purpose is not to use them to buy the latest phone model. This fund must also be replenished once you have used some of it.

Step 2 — Understand deeply that consumer debt will only bring you trouble, stress, and unhappiness. You are practically taking revenge on yourself tomorrow, for a whim of yours induced by advertisements, social conformity, and needs to be instilled by others. Debts are your enemy and your war with them is a total one.

Step 3 — Make a list of all your debts, from the smallest to the largest.

Step 4 — Pay off the lowest possible debt and focus on paying off the smallest debt. The important thing is to allocate as much money as possible to pay off the smallest debt so that you can liquidate it quickly and get the first victory. If necessary, give up going out, being addicted, or doing something to earn more money, but it is essential to pay off that first debt as soon as possible.

Step 5 — After you pay off the first debt, focus on the next lowest debt and pay the usual rate plus the rate you used to pay for the barely closed debt. Thus, you will be able to speed up the repayment of the second debt.

Step 6 — Repeat step 5 until the final victory, that is, you end up paying all your bad debts.

It may take years for you to get rid of debt, just as it took years for you to accumulate debt. Say you don’t believe in the law of karma :), but no matter how hard it is now, believe me you will have to do it sooner or later. The debts are yours and it will be harder and harder for you to pay them as time goes on.

In all this effort to pay off your debts, it will help you to increase your income fantastically.

It’s time to dump her and move on. It is valid in life, it is also valid financially.

No matter how much you think about entrepreneurship, investing, career, vocation, and anything else that sounds enchanting until you’re done with consumer debt, you’ll be chained like a trapped mouse with your hands and feet chained. Free yourself now, while you are still young, and do not remain pawned for the life of the banks.

Increase in money and countless victories against debts.


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