When you’re out of debt, your money stays yours. You no longer have to send it off to the lenders, or watch it exit your bank account immediately. Instead, you can send it out to grow more money for you — in the form of saving and investing.
It’s also a lot easier to buy the exact same kinds of things you bought while you were in debt. (If you still want to.) That’s because things cost less without all the extra fees and interest.
Do you know how long it took me to buy a $12,000 car when I had consumer debt and made $24,000 a year? 48 months — using a car loan from the credit union.
Do you know how long it would take me now, if I still made $24,000 a year?
20 months, to pay for it in cash out of money set aside each month. And that would be with me spending a couple hundred bucks a month eating out, which I darn well never did when I made $24,000 a year.
That’s because my money stays mine. It sits on my checking account until I decide to send it somewhere else. And it’s because we’re debt free.
What will you do when you’re out of debt?