{"id":3923,"date":"2013-01-18T06:00:13","date_gmt":"2013-01-18T11:00:13","guid":{"rendered":"http:\/\/www.allandouglas.com\/blog\/?p=3923"},"modified":"2025-04-21T01:56:41","modified_gmt":"2025-04-21T05:56:41","slug":"the-economics-of-simple-living-less-debt-more-life","status":"publish","type":"post","link":"https:\/\/pineymountainfoster.org\/thoughts\/the-economics-of-simple-living-less-debt-more-life\/","title":{"rendered":"The Economics of Simple Living: Less Debt, More Life"},"content":{"rendered":"

It is popularly said that \u201cMoney is the root of all evil.\u201d But, Dear Reader, I can unequivocally state that money itself is not evil.\u00a0 Having money does not make you a bad person.\u00a0 Rather it is the pursuit of more and more money, the lusting after money; greed<\/strong><\/em> that produces deleterious effects in people.\u00a0 Greed is the root of evil.<\/p>\n

\"money,Money is just another tool to be used in bartering with others for what you need.\u00a0 It simplifies the process of life by offering a universally accepted medium of exchange.\u00a0 Instead of trading eggs for flour or firewood for meat, you trade your efforts in your area of expertise for money, then trade the money for the things you need to support yourself and your family.<\/p>\n

Using money as a bartering medium is far more convenient than exchanging physical goods, especially since so many people these days produce no physical goods.\u00a0 I\u2019d say the vast majority of American citizens support themselves as service providers not goods producers.\u00a0 They may be Payroll Administrators in a corporation, or County Tourism Directors, or Network Administrators in a hospital, or a cook in the local grammar school, or even a laborer in a factory that does produce goods, such as furniture.\u00a0 But at the end of the week, they are not paid in sofas and chairs.\u00a0 What a good thing *that* is!<\/p>\n

Where the whole thing falls apart is the point when folks decide they must have more than they need; when needs get confused with wants.\u00a0 When they get greedy.\u00a0 Do not misunderstand me; there is nothing wrong with having nice things and living comfortably.\u00a0 One does not have to live in abject poverty to be a \u201cgood\u201d person.\u00a0 But when the accumulation of money and things becomes one\u2019s life\u2019s focus, that person becomes enslaved to that pursuit.\u00a0 That person becomes addicted to getting more, no matter how much he or she already has.\u00a0 That person devalues the things and the people already in their lives to pursue getting \u201cmore\u201d.\u00a0 And that is very dangerous indeed.<\/p>\n

Living On Credit<\/h2>\n

The credit card is perhaps the most seductive financial tool invented by mankind.\u00a0 The basic premise is OK; it allows you to make payments on something over a period of time so that you may own it now instead of having to save up for it and buy it when you have the money.\u00a0 But the interest fees that are charged often mean that by the time you\u2019ve paid the debt off, it will have cost you double the purchase price.\u00a0 And living on credit to get things you want and can\u2019t afford can and very often does dig you into a financial hole so deep you cannot get out.\u00a0 And these creditors are happy to let you do it.<\/p>\n

Young folks, if you have not yet dug your own pit of credit card debt; DON\u2019T!\u00a0 Having a credit card is often essential to establishing credit toward getting a loan for a home or a car.\u00a0 If you must have these things, get a credit card and use it for small purchases like groceries or clothing and pay it off each month.\u00a0 Do not let it build up.<\/p>\n

Experienced folks, if you find yourself struggling with credit card debt, call your credit card bank and attempt to negotiate with them.\u00a0 Most are perfectly aware of the effects they can have on people\u2019s lives and, while perfectly happy to let you be crushed under the load of your debt if you so choose, will often offer some relief if you just ask.\u00a0 Be persistent but polite.\u00a0 They may make getting to the person with the authority to help you difficult.\u00a0 Do not make threats you are not willing to back up with action; such as filing for bankruptcy.\u00a0 They know that discharging legitimate debts is far more difficult now than it once was and empty threats will only harden them toward you.\u00a0 Programs vary from bank to bank and depend on your amount of debt and payment history.\u00a0 Ask what they can do to help you get your balance paid down.<\/p>\n

Slay the Small Dragons First<\/h2>\n

It often seems sensible to attack the largest dragon (or debt) that is causing you grief first \u2013 since it is costing you the most money in interest – and worry about the smaller ones later, but it actually works out better to attack the smallest one first.<\/p>\n

Make the minimum payment possible on all other debts and throw everything you can at the smallest debt.\u00a0 It will be the easiest to pay off quickly.\u00a0 When that one is toast; throw all the extra funds AND the regular payment on the now deceased debt dragon at the next smallest debt.\u00a0 As each of these is eliminated, the sword you have to fight the bigger dragons also become larger, thus far more effective.<\/p>\n

Living Debt Free Simplifies Life<\/h2>\n

I speak from experience.\u00a0 We were able to go from being in a pit that was tens of thousands of dollars deep to being completely free of credit debt in about two years.\u00a0 Had we not taken this initiative, we would have been paying on those debts for the rest of our lives.\u00a0 Now the only debt we have is our mortgage, and we\u2019re working hard on getting that too paid off so we can be completely debt free.<\/p>\n

Nothing else simplifies one\u2019s life more than knowing that the only regular bill that has to be paid is the monthly electric bill.<\/p>\n

If you too want to reduce or eliminate debt in your life, check out the books below.\u00a0 I especially like Dave Ramsey\u2019s book; The Total Money Makeover, but the others are good too.<\/p>\n\n\n\n