Why I Chose to Live Debt Free
The American Dream Wasn’t For Me
I’ve finally figured something out!
For years, I’ve read one article after another about how to increase personal wealth. Rarely did I see anything about living debt free. Yet, I longed to be debt free. It felt right for me.
I’ve felt that way for as long as I can remember.
As recently as last week, I read an article on Medium about how paying off a house or car is not necessarily the wisest move. The essence of the argument being that using someone else’s money (the banks) to buy your home and investing your cash instead would in the long run pay off big time or at least bigger.
I sighed.
Why am I still so opposed to debt, even the tiniest amount, when those who claim to be getting rich carry debt their entire lives.
Suddenly a little light bulb went off in my head.
Holy guacamole, I think I found my answer to this nagging question. It just popped into my head out of the blue. Why have I ignored most financial advisors and instead chosen to pay off all debt as early in life as possible? Are you ready for it? Here’s the reason …
I want something different than most people.
I’m not attracted to swimming pools, huge houses, expensive cars, flashy name brands. I don’t want what a lot of people want. I’m not knocking those who chase the American Dream of luxury and opulence, but I’ll never long to fill the giant hole in my heart that humans are born with in the way our culture promotes.
So, if I’m not chasing the American Dream, then what do I want instead?
Peace of mind, brother. Peace of bloody mind. Since the day I graduated from college and launched my career, I’ve wanted nothing more than to reach that sweet spot in my life where I owed nobody anything. No house, car, credit card, school loan payments — nada, nothing, nobody, never again.
I wanted to be at the point in my life where I wouldn’t need to think about my credit score because I’d never be forced to take out another loan.
I always felt like an indentured servant as I worked my way into the best paying position that I could qualify for and then took my raise and paid my bills with it.
When would the money I earned be mine?
When would I no longer have to earn more money next year than this year to be upwardly mobile. Because I felt like it was a never-ending battle to stay ahead of the GAME.
And it is a ruthless game.
Yes, I was better suited than others to pursue my dream because I’m not materialistic. No, I’ll never be the woman that drives up in the sports car wearing expensive shoes and carrying a matching handbag. There’s a lot of stuff that I’ll never have that many Americans would die to own, but I have what I need.
Isn’t that the true essence of the American Dream. If we work hard, we can have what we want?
I’ve watched many of my friends and neighbors chasing the American Dream but to me their chase resembled the American Nightmare. I’ve lived debt free for over 20 years and the peace of mind that affords is priceless in my book.
It’s not for everyone.
But before I even considered investing money, I always had a plan to get rid of debt. If I could only do one at a time, pay off debt or invest, I chose paying off debt. Nowadays, there’s a growing trend toward retiring with a mortgage.
My goal centered around making sure that my essentials to life were safe.
What might that be, you ask. I consider a roof over my head to be an essential. If I own it, I’m better off for it. So, I don’t risk my dwelling. I never thought of my home as my starter home either. It made more sense to me to buy a place that I could afford, pay it off as soon as possible, and then only sell it if I could buy my next home with cash and have some money left over. I’ve always chosen smaller homes that are well cared for but allow me to live well below my means. My dream wasn’t to go bigger, but to live free of debt.
Yet, I have everything I need and more.
I know how to live with less but even my simple standards are far and above what many people throughout the world experience. Even with my one used car, smaller home, no swimming pool, few name-brand clothes, and rarely going out to eat, I’m still a member of the 10%.
You’ve heard of the 1%? Well, to be in the top 10% of the richest people in the world, you don’t need any more than what I own.
I’ve arrived. And, if I can stay out of debt, I might not lose it tomorrow. I sit on the sidelines watching friends and acquaintances with a long wish list and wistful expressions and I can predict what they’ll do next. They’ll borrow money to spend money they don’t have on something they don’t need in order to feel successful.
And I sigh with relief that I didn’t get sucked into that way of life.
I don’t begrudge others their dreams, but I know that I have what I’ve always wanted, and no one will be able to persuade me to borrow money again. Maybe I would have a ton of money plus some cool stuff if I’d followed the advice of many finance gurus. I wasn’t psychologically equipped, however, to play Russian roulette.
That’s the truth.
At least, I finally understand why my goals were different than the mainstream standard of success.
My dream has always been no debt and lowest overhead possible. That in turn relieves me from having to earn more money next year than this year. It got me out of the rat race earlier as well. I sleep better at night knowing that my house and car are mine and that my credit cards are paid off and cost of living is low.
I even moved to a less expensive part of the nation after I retired to keep my overhead as low as possible.
Once I reached my goal, the pressure of modern life was dramatically lowered. I could breathe. I could relax. I felt free. If I earned more money, it was truly mine. I could save it or spend it. But if I had a bunch of loans, I would never even see it. It would leave my employer’s hands to fall directly into my creditor’s hands.
I remember when I first heard about the rich coffee plantation owners in Guatemala. (I lived in Guatemala as a kid for a year).
The poor people who worked on these plantations weren’t slaves, well, not exactly. They worked hard for small wages and then when they got paid, they shopped for everything they needed at the company store. Yeah. They turned around and gave their meager wages back to the plantation owner.
Ugh!
I was only 13 when I witnessed such stark realities. Maybe that’s what started me down my path to independence. I don’t know. So, my advice is to find your own financial path based on what you need not on what your culture says you should want. I did it my way and I’m happy with how it turned out.
I hate debt, so I keep it simple. No debt, lowest overhead possible.
Teresa is a retired educator, author, world traveler, and professional myth buster. You can find her books on Amazon.
