The Money Advantage Podcast

Why Debt Free Doesn’t Make You Financially Free


Listen Later



https://www.youtube.com/watch?v=Okx4cjnLylY




Becoming debt free is often listed as a notch on the belt of financial progress. It’s widely discussed, admired, longed for, celebrated, and even praised by so-called financial experts.  But, paying off debt may be risky or even altogether unnecessary.  In fact, you’re probably not in debt in the first place!  We want you to be debt free, but you first have to know what that means.  Many confuse being debt free with being liability free.  Before you decide whether to add becoming debt free to your checklist, let’s get the skinny on what debt is.  Then, you can take action that gives you the most certainty, control, and peace of mind.



To help you gain clarity on your debt position and know what to do about it, we’ll answer:



* What is debt?* Am I in debt?* Will a debt-free goal help or hurt me?* More importantly, to reach my goals, gain confidence, peace of mind, time and money freedom, what should I do about debt?



This conversation will help you develop a big picture perspective of a balanced personal economy.



Rather than spiraling out of control, you’ll gain control, options, and increased financial capabilities.







Why Becoming Debt Free Seems Like Such a Big Deal



Let’s face it; most people fear debt. They feel it’s an encumbrance or ensnarement that nullifies their goals.  If it was in a game of Taboo, it’s almost a dirty word that lives with other deplorable financial conditions, like losing money, bad credit, foreclosure, and bankruptcy.



Why does debt strike at the chord of our financial aspirations so much so that ringing the debt-free bell seems like such a milestone?



Often families start off saddled in student loan debt.  Because there’s not much cash, they add car loans, a mortgage, and credit card debt to achieve their lifestyle.  They work a job to pay it off, while also balancing buying a house and saving for their future.  But the more debt you have, the harder it seems to pay it off because you feel tighter each month.  The debt seems like a slippery slope that can easily have you feeling that forward progress is all but impossible.  To be debt free might seem like the best way to get back on track.



Maybe looking at the debt payments each month is an arrow to the heart, reminding you of past mistakes.  To be debt free would mean to be free of the pain of guilt.



Because a balanced financial life seems unachievably complex, looking at it one piece at a time might feel more manageable and doable.  Becoming debt free might be that one step you think you can really accomplish.



However, putting all your emphasis on paying off debt can be detrimental when it causes you to lose control and delay your journey to financial freedom.



Where Debt Freedom Fits into Your Cash Flow System







Dealing with debt is just one step in the big picture of the Survival to Significance Cash Flow System.



Debt is part of your cash flow in the foundational stage.  How you handle debt has the potential to increase or decrease your cash flow an...
...more
View all episodesView all episodes
Download on the App Store

The Money Advantage PodcastBy Bruce Wehner & Rachel Marshall

  • 4.7
  • 4.7
  • 4.7
  • 4.7
  • 4.7

4.7

60 ratings


More shows like The Money Advantage Podcast

View all
Wealth Formula by Buck Joffrey by Buck Joffrey

Wealth Formula by Buck Joffrey

408 Listeners

VINCE by Cumulus Podcast Network | VINCE

VINCE

63,037 Listeners

Main Street Business by Mark J Kohler and Mat Sorensen

Main Street Business

591 Listeners

The Jordan B. Peterson Podcast by Dr. Jordan B. Peterson

The Jordan B. Peterson Podcast

33,953 Listeners

Big Picture Retirement® by Devin Carroll, CFP® & John Ross, JD

Big Picture Retirement®

524 Listeners

The WealthAbility Show with Tom Wheelwright, CPA by The Rich Dad Media Network

The WealthAbility Show with Tom Wheelwright, CPA

516 Listeners

Life Success & Legacy by Life Success & Legacy

Life Success & Legacy

33 Listeners

BetterWealth with Caleb Guilliams by BetterWealth Media

BetterWealth with Caleb Guilliams

244 Listeners

Banking With Life Podcast by James Neathery

Banking With Life Podcast

77 Listeners

The Infinite Wealth Podcast by Infinite Wealth Consultants

The Infinite Wealth Podcast

53 Listeners

Wealth On Main Street by Richard Canfield & Jayson Lowe

Wealth On Main Street

11 Listeners

The Money Multiplier Podcast by The Money Multiplier

The Money Multiplier Podcast

28 Listeners

Wealth Warehouse by The IBC Guys via Podcast Principles

Wealth Warehouse

118 Listeners

Infinite Banking Mastery by Valerie LaRoque

Infinite Banking Mastery

21 Listeners

The Tucker Carlson Show by Tucker Carlson Network

The Tucker Carlson Show

15,546 Listeners