The ONLY Way to Get Out of Debt
April 15, 2009
“He who will not economize will have to agonize.” –Confucius
(Photo Credit) One of the big contributing factors to my relatively stress-free life is finding consistent Balance… in my bank account.
We don’t have any credit card debt, we have minimized our monthly overhead (the amount of money we have to come up with), and we live within our means. As long as we have some form of even modest income, we will not suffer from financial worries.
I handle the finances in our house, mostly because I like doing it. I have an MBA in Corporate Finance, was a Manager of Accounts Payable at an architectural firm, and a Financial Analyst for Cost Management. If there’s one thing I know how to do, it’s balance a budget.
So I want to share with you the single BEST video I have ever seen about managing household finances. As they say in the video, “The advice is priceless and the book is free.” Here it is, so pay close attention:
Is it just me, or was that the best financial advice you’ve ever heard
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Lisis,
The video made me laugh. What a novel concept – don’t buy stuff if you don’t have the money. Seriously, I don’t have any debt including credit card debt and, as a result, I sleep better at night.
I have friends that use credit cards for shopping therapy and buy things they can’t afford. The credit card debt causes more stress so they need more shopping therapy to relieve the stress. This cycle continues indefinitely. It’s sad to watch.
Roger – A Content Life’s latest post… What’s Your Favorite Charity?
Seriously! I thought I’d take a slightly different approach with this hot topic, but the advice really IS priceless and the ONLY way to get out of (or avoid) debt. I did include a couple of legitimately useful links to Dave Ramsey’s website for step by step advice on getting out of debt… but the video is the BEST.
=-)
Hi Lisis,
I am with Roger. It was funny! When I was growing up, the word “debt” was equivalent to the devil and evil. My father always stressed the importance of “If you don’t have the money to pay for something, then don’t buy it”.
Kind of interesting that old wisdom is now being rediscovered! 
Great job!
Nadia – Happy Lotus’s latest post… High Beam to Success
Hilarious!
Regina’s latest post… Job Interview #1
Thanks for posting the video. That’s definitely great advice. Like most advice, it’s so obvious, but so many people fail to follow it. Like Nadia, I’ve always considered debt as evil and I’ve done my best to avoid it in life. I do have a bit of a shopping problem though so I should take that advice to heart. Thanks!
Positively Present’s latest post… this IS it
I don’t have sound on this computer so I’ll have to watch the video when I get home. Now I see what you mean by “Quest for Balance” *rimshot*
One great piece of financial advice came from Richard Carlson: “Don’t be tempted to increase your standard of living every time you increase your income.” The tendency is to want to spend more as soon as we make more, so no ‘space’ ever gets created between incoming and outgoing.
David Cain’s latest post… 9 Thoughts Worthy of Immortality
Yeah, David… I’m on an all-around Quest for Balance.
Yesterday was such a heavy topic, I figured I’d lighten it up today. But, truly, that IS a great quote. It’s amazing how many people live paycheck to paycheck even if their check is ridiculously HUGE. Living below your means is a great way to contribute to your inner peace (lack of stress).
Nadia and P.P., I really hope we get back to something like that. Maybe debt doesn’t have to be completely evil, but it should be treated with some consideration. The past decade has seen some crazy irresponsible lending and spending, and that didn’t work out so well for us. Maybe we’ll do better the next decade.
Very funny, and timely of course! You are so right, financial balance is another whole kind of balance, and makes such a different in your state of awareness. My husband and I have been downsizing and paying off all debt the last few years in preparation for a big change in our lives, and it feels good. I think a lot of Buddhist teachings on desire are so relevant to what has been going on in our economy the last few years. Desire has a way of snowballing and taking your over, and once you get into the habit of buying things just because you want them, that momentum can really take you over and the line between ‘need’ and ‘want’ gets completely blurred. Now (hopefully) we are all taking a collective breath, going through withdrawal, and settling into a phase of only buying what we can actually afford.
Lisa (mommymystic)’s latest post… Nature Mysticism
Hi, Lisa! You’re right… I think most of us have fallen into that trap of buying stuff we don’t need with money we don’t have. A few years ago my husband and I got in a little over our heads with debt (mostly medical bills, but still…) We sold our house, downsized, and used the profit to pay off the debt. I can’t possibly express to you how great it feels to NOT owe the credit card companies anything.
Now we have a smaller house in rural Georgia, instead of fabulous Austin, and we have one car. But we are happier than ever because that huge burden has been lifted. All kidding aside, getting rid of debt really does contribute to inner peace in a huge, direct way.
This was hilarious and made me laugh. It’s so basic and yet so many people don’t get it. Maybe most people. Stumbled and tweeted!
Stephen – Rat Race Trap’s latest post… Top 10 Ways To Grow Your Brain
Thanks, Stephen! I’m so glad you liked it. Welcome to Q4B! I’ve “seen” you around the blogosphere, and recently discovered YOUR blog, so it’s lovely to see you here now. Welcome to my humble home away from home.
PS: I still don’t want to believe numbers 1 and 7 on your list.
Very good advice, my friend! It’s amazing how so few people in the world have “common” sense as it applies to money. Thank you for giving us all a good dose of humor today!
Jay Schryer’s latest post… My (Fleeting) Moment of Zen
I’m with David (and Richard Carlson), and always ask myself, “Even though I HAVE the money, do I really want it bad enough to part with my cash?”. Over the last several years, I’ve become a believer in using something until it is USED UP!!
@ Jay: You’re welcome. I figured we all could use a little humor today.
@ Jeff: What cash? Are you stashing cash that I don’t know about?
Most of the time I’m really very happy not to live in the USA (sorry guys, but it’s true!).
There are times, though when it p***** me off. Like the times when I click on a video and I get a message on the screen saying
‘We’re very sorry but the video you have requested is not available in your geographical location. Move to the USA if you want to see the clip’.
I made the last bit up but I’m sure that was the invisible subtext.
So .. great post Lisis. Really funny video and such a great message. I just wish I could have actually seen it!
LOL
Ian | Quantum Learning’s latest post… Do my words improve silence?
Ian, that’s terrible!!! I know what you mean, though. When I was in Costa Rica I got that message all the time. I kept thinking, “I don’t know if I could live here again, now that I’m blogging!”
Do you have access to the Saturday Night Live videos? This is one with Steve Martin… maybe, “Don’t buy stuff you can’t afford?” Not sure if that’s the name. It’s a classic, though. Worth searching for.
I love this Steve Martin video. It’s so funny, but the basic message is important! That said, I also love some of the less informative SNL videos…!
Alison | Quest for Balance’s latest post… The ONLY Way to Get Out of Debt
[...] the archives. And for a humorous take on managing your finances… here’s a post that may help: The ONLY Way to Get Out of Debt (be sure to watch the video at the end). Enjoy! __________________ http://www.questforbalance.com ~ [...]
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