Life after debt is wonderful. But don’t get me wrong – getting out of debt is very difficult. And even more so, staying debt free is a totally other thing.
Thankfully, after much hard work and dedication, I paid off $14,000 in just over a year. To do this I was living on 2/3rds of my income and cut back my lifestyle to almost nothing.
But for me it was totally worth it!
Because having control over your money and dictating how you spend it is, well…priceless.
Being in debt is a normalcy in this society, so getting — and staying — out of debt is a crazy new thing altogether. You’re definitely going against the grain on this path.
So has it been worth it?
Sacrifice is empowering
After working multiple jobs, starting a freelance business and slugging through a day job that I really disliked, I came out on the other end a winner.
The rewards to being debt-free are obvious — more money, inner peace and financial freedom.
But there are intangible benefits too!
The biggest advantage to sacrificing and completing your goal is that you followed through and can now reap the rewards of your journey.
Now anytime I face a difficult financial problem or life choice, I think back to when I had debt and know that I can accomplish anything that’s thrown my way!
Financial freedom can be boring
Before I paid off all my debt, my decisions consisted of multiple questions and complicated strategies.
Which bills should I pay first?
Which one has the highest interest rate?
Should I take this vacation or use the money towards debt?
The list goes on.
But now, my decisions are much simpler. I pay my bills, put money into savings and investing, then use whatever funds are left for entertainment or other financial goals.
Once you’re out of debt, the decision making process is rather boring. There aren’t any complicated financial spreadsheets (like tracking debt snowballs or debt avalanches).
There’s just simply living within your means.
But if you’re someone who likes living on the edge, you’ll find that having full control of your finances, may not be quite as exciting as you’d think.
Slow and steady wins the race, and in a world of endless promotions and crazy financial endeavours, the road to financial freedom is simple and boring.
Going into debt (again) is easy
Like I mentioned, life after debt can be daunting. When everything around you is tempting you to spend more, it’s hard to constantly say no.
This is especially true once you have all your debts paid and the creditors are all but knocking down your door with new credit card offers and incentives.
It’s ridiculous how easy it is to charge a few purchases on credit and end up in a couple hundred or thousand dollars of debt again.
However, there are some great deals on credit cards if you do need one.
The Chase Sapphire reserve reviews say that you can get a few thousand miles for charging a certain amount in a month. If you have the means to immediately pay this off, it would be a smart way to qualify for a free plane ticket.
Even when you have the discipline to get out of debt, you have to remain disciplined to stay out of it. Just because you paid everything off doesn’t mean you don’t still have the urge to spend or buy new things.
Debt has intangible benefits
Have you ever wondered if paying off debt has intangible benefits?
We already know the most common benefits of paying off debt:
- More money in your bank account
- Not living paycheck to paycheck
- Freedom to spend your money how you want
But what other intangible benefits come from being debt free? Here are some very real side-affects I experienced when paying off my debts.
1. Less physical and mental stress
When people are dealing with mountains of debt, they’re much more likely to report health problems. Four of the five top causes of death in America (heart disease, stroke, cancer and lower respiratory diseases) can be triggered by stress.
And as we all know, one of the biggest contributing factors is financial stress.
As you pay down your debt, you reduce the amount of both physical and mental stressors. Which helps you become a healthier and happier person.
2. Better relationships
One of the main reasons for couples splitting up and getting divorced, is money fights and money problems. This was one of the reasons my marriage failed, so I understand firsthand the part financial stress plays in a relationship.
But by reducing your debt, you’ll be eliminating one of the biggest factors that contributes to stress within your relationship. Many studies have shown that happily married couples outlive singles, divorced and unhappily married individuals.
Having less debt means fewer reasons to fight about money and spending, which leads to more harmonious relationships. You’ll have more successful relationships – with your kids, your parents and of course your spouse.
3. Opportunity to fund your dreams
Reducing your debt lets you have the freedom to spend, save and give as you see fit. This means you can save for that vacation you want, or spend money on some new furniture for your home.
Having financial flexibility gives you and your money the opportunity to fund your dreams and goals, instead of funding someone else’s bank account. Instead of being in debt to credit card companies your whole life, you can take more risks and have more fun.
4. Peace of mind
I’ve said it before, but having peace of mind when it comes to your financial future is priceless. No amount of stuff or material possessions will make you feel as good as having peace of mind.
To be able to lay down at night knowing your family will be taken care of, that your kids can go to college and that you can work at a job that truly makes you happy. These are all intangible benefits that come with not owing debt.
They may not be evident when you look at them on paper, but sometimes life is about more than just doing the math. Once you begin paying off your debt, you might experience some of these unexpected but wonderful side-effects.
It’s an uphill battle
Not a lot of people talk about life after debt, but for many of us it’s a harsh slap in the face once reality sets in. Even normal purchases scare me into wondering if I’ve overextended myself.
Then the fear of evolving back into a debt filled lifestyle slowly creeps into my mind.
After working so hard to become debt free, I found a life without debt is also very difficult. It seems like an uphill battle no matter what stage of life you’re in.
There are still uncertainties and money concerns like, how I’ll pay my bills, if I can afford certain things and if I’ll make enough money.
Whether you’re paying off debt or living a life after debt, the fact remains – you need to spend money to survive.
Which means it’s a daily struggle.
The economy does not cater to people trying to forge out their financial path, without the use of debt. And it’s definitely not nice to those of us who are going against the grain.
And then there’s the questions.
Can you really save enough money? What is enough? Will you ever reach true financial independence away from the loan sharks, big banks and endless credit card applications?
Is it worth it?
But even with all those questions running around in my head and the constant struggle every day, I’d still prefer to live a life without debt. Instead of my fate being placed into the hands of a debt collection agency or a bank, I control it.
No matter how alarming that perspective may seem at times, it still leaves me with hope.
The scary truth about life after debt
Once the excitement of paying off all my debt wore off, I slowly discovered there’s a big downside to living debt free. It’s not something many people talk about, or at least I never hear it mentioned much.
What is this downside?
It’s the fear and temptation of getting back into debt. It seems like everywhere I go there’s a credit card or loan application being thrown at me. And people are pulling at me left and right to spend more money.
It’s very overwhelming.
Our whole society is geared towards getting into debt and staying in debt for a long, long time. It’s actually a daily struggle to stay out of debt, because the idea of being in debt is so widely accepted and mainstream that I look like a crazy person for saying “no” all the time.
The hope that I have the potential to overcome any financial obstacle placed in my way and unlimited possibilities to create a life worth living – without debt.
That kind of freedom is totally worth it!