Reducing Debt Dependence
- stephanieandjosh
- Feb 23, 2017
- 2 min read
We’re on a mission to live debt-free, and except for our pesky mortgage, have been relatively successful so far. We have committed to this goal for a number of reasons:
We’re not fans of the banking system; they have too much power which should rest with the customers, but does not, and they continue to invest in industries that violate human rights and the environment. And they all seem to be in bed with politicians who should be working for citizens rather than just dollars.
We value our freedom and know that we will have increased independence if we don’t owe anything to giant organizations that don’t care about our well-being. Not owing money also provides us increased control over our livelihoods and decisions-making if we are not concerned about the consequences of unpaid debts.
It just makes good financial sense and allows us to earn on our own savings and investments without any loses owed to interest on money we never had in the first place. It also facilitates more realistic goal-setting.
To achieve a relatively debt-free lifestyle, we:
Regularly review and amend the budget to respond to changes in our lifestyle, better plan for our goals, and make the necessary adjustments on an ongoing basis rather than having to respond ad hoc to unexpected setbacks or opportunities.
Make long-term plans based on priorities to ensure we save for trips, purchases, infrastructure requirements, and animals so that these do not come out of our day-to-day expenses or our emergency funds.
Save before making major purchases; similar to the above, we generally buy tools, equipment, tickets, as well as everyday expenses out of pocket, and where we don’t have the cash on hand immediately, we wait until we know we can pay the credit out of the next pay cheque to avoid owing interest. Sometimes we can get or do what we want right away, but living this way means everything we do and own has more value.
It’s not always easy, and sometimes we have to forego certain purchases or activities, but this lifestyle and the farm are the adventure we chose to live (at least for now) and we’re happy to commit the majority of our time and resources to it until we decide on a new adventure!
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