I never seemed to save any money or to make substantial progress financially. No matter how hard I worked, or tried, I could never get ahead. Does this sound like you? Don’t worry, there’s hope!
After coming to grips with my horrible financial reality, I made the decision to get out of debt, for good – no matter what. After a year of working hard and cutting back on my lifestyle, this past May I finally paid off $14,000 and became debt free.
Here are five important reasons why I believe young adults, like me, should take control of their finances and strive to be debt free.
1. You can break free and finally get ahead
Imagine if you didn’t have student loans? What if you started your dream job or new career without debt trailing behind you? There’s no limit to what you could do, and you’ll have a huge jump start on life compared to your peers.
This is exactly why you should strive to get your finances under control and be debt free now! Now’s the perfect time to build a solid foundation for financial success, one that could propel you far into the future, ahead of everyone else still doing the daily grind.
When other people around you are in their forties or fifties and finally breaking even, you will be miles ahead of them because you paid your dues now. Instead of crippling yourself financially as a young adult, you can break free and finally give yourself a leg-up.
2. You can afford to follow your passion
I grew up in a family with a dad who was a missionary and traveled all over the world. That’s what I thought my life would be like when I grew up, but after graduating and finding my first full-time job, I didn’t have time to travel because I had too many bills to pay.
It was a harsh pill to swallow but now that I’m debt free I can afford to do what I’m passionate about and seek out new adventures.
Once you make the decision to eliminate your debts, you’ll have the opportunity to do what you love, whether that’s traveling, changing careers or getting married. Why? Because you won’t have bills, debt and monthly payments choking your financial freedom.
3. You’ll have greater peace of mind
There’s no monetary value or financial chart that can measure how awesome it feels when you have control of your money instead of it dictating your life.
Instead of lying in bed at night stressing about how you’ll come up with the money to pay your car note or electricity bill, you can sleep peacefully knowing that you have a secure future ahead of you.
You’ll no longer be worried about your money because you’ve changed the course of your future and greatly reduced your risk of losing your home, or not being able to afford college for your kids. That kind of peace of mind is priceless.
4. You earn interest instead of paying it
Spending your whole life paying bank fees, interest charges and worrying about late payments is no way to live. Why not change your life right now? Instead of asking others for financial support, you’ll be the one helping them.
Instead of padding your financial institution’s pockets, you’ll be padding your bank account! You’ll no longer be paying interest payments to a bank or credit card company, instead, you can watch your savings grow and build wealth for the future.
5. You’ll have fewer fights about money
I don’t know about you, but relationships are tough enough without throwing money problems into the mix. Fighting about money was the main reason my last relationship failed, and after that experience I vowed to never let my finances rule my life again.
Since neither of us knew how to properly handle money as a couple we quickly shifted the blame to each other. While not having debt won’t solve all issues couples face with money, it does increase the chances of peace within your relationships.
What’s another benefit young adults have, if they focus on getting out of debt now?
Carrie Smith is the financial writer behind Careful Cents, where she helps people get out of debt and find a career they love. Her writing has been featured on The Huffington Post and LifeHacker. Connect with her on Twitter @applecsmith.
Category: Money Basics