Debt

I've always hated debt.

When I was at Duke I put all my extra money into the mortgage on my townhouse in an effort to pay it off as quickly as possible. I'd only charge something on a credit card if I had the money to pay off the balance every month (I wish I could say this now). To me, debt has always felt like a weight on my shoulders. Now that I'm in DC and everything is more expensive (especially housing!) it's even worse. [This is one of the reasons we're trying to get back to NC]

As I started real estate investing, I met Steve Cook, whom many of you will remember me mentioning in the past. He has a similar view of debt and he really enlightened me on how controlling debt can be. As he's stated, the amount of debt we have impacts what job we take, where we work, and how much we work. It controls how much time we can take off for vacation and where we can go.

If you think about it, sadly, debt influences just about every aspect of our life.

I love these definitions from Steve:
"A mortgage is a commitment to work 30% of your waking hours for 30 years for a place to live now."

"Borrowing is exchanging your future time for the benefit of something today."

But it's not just the mortgage. It's credit card debt, car payments, etc. It all adds up to a minimum dollar amount that you must come up with every month, no matter what.

I personally feel trapped by debt and am actively pursing a way out. Many of you may feel the same way. I can tell you, as you dig your way out of debt, it will feel as though a weight has been lifted. You'll be able to enjoy time with your spouse, family and friends, be more generous, and start sleeping at night again.

The lesson here? GET OUT OF DEBT!

I know it's easier said than done, especially in today's economy, but every little step in the right direction counts. Stop charging things you can't afford because you think you're entitled to have them. Our culture promotes instant-gratification - we must avoid this way of thinking. The reality is, if you have to charge it, you can't afford it. Try and distinguish between want and need - comfort and necessity. Instead of getting a new car every 3 years, try and make it 5. You get the point.

Just like it probably took you some time to get into debt, it will take you some time to get out of it. Don't worry though - you WILL get there, and when you do, a whole new way of living will open up.