How Being Debt Free will Benefit your Financial Future
Up to 75% of American families are carrying some form of consumer debt these days, making it fairly easy to think that this way of living is quite normal. While many households simply shrug off the fact that they owe money on multiple credit and/or store cards, the truth is that this behavior does have an effect on stress levels.
Although it is possible for several families to adopt a debt-free lifestyle, it does require a high degree of self-control and financial discipline. Below are some ways in which living a debt-free life will benefit your finances now and in the future.
Knowing that you owe money on one or more store or credit cards and a vehicle causes untold amounts of anxiety in most people, which in turn can negatively affect your health over time. If you’re suddenly unable to make a payment on your vehicle, you stand a strong chance of losing it – along with all the money you’ve already paid towards its loan.
Eliminating just your credit card debt and vehicle loans will go a long way in helping you to feel a tremendous sense of relief in knowing that your car cannot be repossessed due to non-payment, for instance.
Enjoy Increased Savings
Living debt-free not only relieves stress levels; it makes it easier for your household to save money as well. Money that would have initially been spent on credit or store card interest can be placed in a savings account instead, which can be used to build a decently sized emergency fund over time. If you already have an emergency fund, additional savings can be put towards other activities such as a vacation – or even starting to fund your retirement.
Have Funds to Invest
One of the biggest advantages of being debt free is that it will provide you with the ability to start investing money for your future.
The earlier you can start investing towards your future, the more time compounding interest will have to help your money grow exponentially over time. This could even enable you to consider the option of early retirement in some cases.
Enjoy Financial Security
A lifestyle that’s free of consumer debt will go a long way in helping to increase your level of overall financial security. It means that you won’t have to constantly worry about debt hanging over you if you or your spouse unexpectedly loses a job or have work hours cut. If the worst happens and you become ill, having backup finances available will allow you to focus on recovery instead of finances as well.
If you’re struggling to make ends meet because of having a lot of consumer debt, or you’d like to find out more about how you can manage your finances in such a way that you’d be able to save towards retirement, get in touch with our team today. We look forward to helping you create the most secure financial future possible.