Debt Is Not Freedom

There is a great debate going on at the federal and state levels about the amount of debt our governments are racking up. There are many who feel that we can continue to spend without any penalties. However, there is also a growing band of individuals who feel that perhaps it is time to stop running up debts that our children will have to pay for.

So what is the answer? Personally, as a lover of freedom, I feel that debt is an albatross around the neck of anyone who bears it. Look at what is happening around the country and you will see how bad things are. At the personal level, people are entering bankruptcy because of their spending. And, at the governmental level, now that revenues are decreasing, the over spending of the past is coming home to roost.

Debt is a jailer. The other day I put up a video about the Federal Reserve and the banking system. This is simply the originator of all debt. From here, it grows until it is around your neck. Debt is the noose that someone else can close at anytime.

People work their entire lives to pay their bills. Look at the average savings rate and you will see this. People simply have nothing to show for their years of effort. They are slaves in the highest sense. Their entire working existence benefited someone else. To me, this is the epitome of slavery.

Everyone seems to think there is an income problem. This is the American way of thinking. Sadly, for most, it is absolutely inaccurate. The truth is that there is plenty of money coming in. What causes the problem is spending. We see this in both individuals, companies, and governments. The truth is excessive spending amounts to volunteering to live as a slave. It is that simple.

Consider the plight of the American people the last decade or so. We felt we were entitled to live the 'high life' regardless of whether one could afford it or not. The idea started that we were to live in the nicest house money could buy. The term McMansion" was born. Of course, this then extended to the nice automobiles (new not used) and vacations to exotic lands. Since free cash was not available for these ventures, the refinancing of the homes because our ATM. At the same time, we were racking up credit card debts to the tune of tens of thousands per household. Nobody believed there would be negative consequences of all this spending.

Of course, we all know what happened. The housing market collapse bringing with it the entire global economy. Suddenly, people found themselves either unemployed or underemployed. And guess what came knocking at the door? The debt collectors. Overnight, millions of people could not pay their mortgages, car payments, credit card balances, and home equity lines. The negative side of debt reared it's head. Why was anyone surprised? The idea that one could get away without 'paying the piper' was insane. The day of reckoning always comes.

Basically, if you are to be free, then you must realize the importance of eliminating all debt from your life. Those who continue to carry this around are guaranteeing they will remain enslaved for the rest of their lives. The lessons are clear but few seem to want to learn them. Debt = Slavery. It is that simple.

I believe the American people, and most Western societies, need to acclimate themselves to living about 25% lower than they were. As a culture, we spent at least 125% of what we brought in. It is time for families to deleverage. Sadly, I feel that few will. Most are going to carry their ignorance back into the same hole again. We are terrible students of history. For whatever reason, we believe that 'this time will be different'. It never is.

I suggest you start the process of eliminating any debt you have immediately. Take any extra money and pay off your credit cards now. Remove that burden from your life. Start to exist on a cash basis. If you can afford it in the moment fine. But, if you lack the funds, then you are to pass on the item. 'Charge it' is removed from your vocabulary.

The mindset needs to change. Get rid of the idea that you are entitled to anything. The truth is you are not. You are entitled to what you can pay for. That is a motto you need to adopt. Again, it is freedom we are after and that comes with a price. Many had to lay their lives down for that. Your contribution to that cause is to be in control of you desires. Instant gratification needs to be replaced with discipline. This is the path to freedom.