Debt: The Path To Slavery

People are taught to spend. This is the mindset of the American public, in fact, of the entire Western World. Our entire economy is based upon what is produced and bought. The idea of saving is something that is overlooked in the mantras of our leaders. Instead, whenever there is a major catastrophe, we are told to act normal and spend money. This conditioning comes at a great cost.

Debt: The Prison Most of Us Are In

It is one thing to spend everything that you make. There are many people who have their outgoing matching their incoming. Of course, this creates a terrible situation if one loses his or her job, but, while employed, it is sustainable. People in this situation are broke yet they have a lot of stuff.

Sadly, this is not the place that many stop. If the average person spent only 100% if what he or she took in, then this would be an improvement. The reason is that we simply spend more than we earn. Through the use of debt, we are able to leverage our buying power up many times over. This is something that was done repeatedly over the last 30 years. And, it is something that happened at every level.

Debt becomes an albatross around people's neck. While initially it can be a freeing experience to get something new without having to pay for it, we all know that eventually the creditors come a knocking. There is a time when the payments needs to be made. This is where we cross the line from freedom into slavery.

If you look at the average household, you will realize they are saddled with debt they cannot afford. People have house payments that exceed the value of the home. Sitting in the driveway are two vehicles with a high monthly payment. The credit cards are maxed with payments equally 18%+. Overall, we are a nation of people who work to pay interest on the goodies we all received. This puts us in a financial prison which few ever can break free of.

The Path To Freedom

If debt leads to slavery, what is the path to freedom? Quite simply, it is cash. Paying for everything that you need at the time you purchase it eliminates the need for debt. This is a methodology which ensures that you live within your means. Those who like to move fast tend to 'charge it'. These are the people most interested in 'instant gratification'. They want it in that moment and they will have it. How to pay for it is something that will be considered at a later date.

Society is not geared towards this idea. Instead, the average individual buys into the mindset that he or she must spend to be worthy. Few practice financial responsibility. What is more common is the entitlement mentality that 'I deserve this'. The idea of driving an older car is not palatable. Cable television and Xbox are a necessity in life. Whatever anyone else has, we deserve it also regardless of the difference in economic level.

Sadly, the powers that are promote this idea. Madison Avenue is terrific at making people believe they are entitled to things. Politicians and business leaders also spew this same idea. We are Americans after all with the highest standard of living. Therefore, everyone deserves to own his or her own home. This was the mantra of the last 15 years and look where that got us. Basically, many people were not responsible enough to be owning their own home. Yet that didnt stop them from getting involved in that game with horrific results.

The point is the path of the masses ultimately leads to enslavement. At the core of everything is the banking system which makes money each time someone buys into the entitlement idea. The amount of interest we pay collectively is astounding. Bankers have always rigged the game in their favor. Today, we see the Federal Reserve charging interest off the dollar bills it creates which it conveniently parks in the vaults of the major banks. This practice dates back many years and serves as a means of taking from the masses. I will let you research this idea on your own since there are thousands of articles and videos depicting this same point.

At the end of the day, you have to be willing to forgo debt if you are to be free. This will require a shift in your mindset because we are conditioned to buy, buy, buy. The idea of living within one's means is foreign to all of us. We feel it is our right to take a trip without having to save up for it. This thinking only serves to put us in financial servitude. The amount of debt we are swimming in will sink us. Break free by using cash only for purchases. It is one major act on your path to freedom.
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Save! Save! Save!

The United States financial system is set up to enslave you. In fact, the entire Western world is based upon this idea. Financial domination is something that the powers that are seek to maintain and grow. Anyone who ever experienced debt knows the hole just gets deeper.

Misuse of Debt

We recently witnessed the crash of one of the biggest bubbles the world ever saw. The housing crisis that results from the credit expansion of the last decade is filtering through every segment of our society. Unemployment is at record levels with people feeling the pain. There are few who are not affected in some way.

The entire episode was the culmination of the misuse of debt. People spent more than they could reasonably pay back. While there are many reasons this took place (and places to point the finger), the truth is that people were given money who didnt deserve it. The greed of the banking industry to keep the mortgage pipeline full overrode common sense underwriting standards. Now, we as a nation, are left picking up the pieces.

Debt is a wonderful tool to use as long as one keeps things in proper perspective. Leveraging is a legitimate way to make money. In fact, it is truly one of those financial mechanisms which creates tremendous wealth. However, as we saw, when in the wrong hands, it is catastrophic. People who use every dollar of credit offered will end up destroyed. I would say that most of the masses fall into this category.

Savings

Have you ever noticed how the political figures never stand up and say we have to save more. Whenever a crisis hits, the mantra is for people to keep spending. Their viewpoint is to keep the economy churning regardless of the outcome. The impact on the individual is not in their mindset. Ultimately, as is always the case, the individual minion gets stuck holding the bag.

Fortunately, I am here to tell you something different. If you hope to be free and exist on any type of high standard of living in the future, you MUST save. Following the behaviors of the past will doom you to the same failure. There are millions of people who are teetering on the edge of financial insolvency who have no idea. The net worth of the United States, both as an entity and a collection of individuals, is less than zero. At some point, that rooster will come home. And the time is not so far along

The who create bubbles are engaging in a high risk game. Many of the 'market makers' know exactly what they are doing. They have the knowledge and connections to ride the bubble up and bail at just the right time. The average person does not. That is why saving is so important. It allows us to enter into the game only when things are at an optimum for us. Following the herd is not a sound financial plan.

Those with money are able to make more money. Ensure that you are one of these people. Begin the process immediately of saving all that you can. Reduce your entertainment expense as much as you can. Cut out those unnecessary expenditures. Cancel your cable. Do everything in your power to start amasses some money in savings. This will allow you to be ahead of the next bubble when it pops. A contrarian outlook here is extremely beneficial.