Friday, 10 June 2016

Imagine Life With No Debt

Some family silverware awaiting Friday night's with family and food.


IMAGINE our life with no consumer debts.

Take a minute right now to think about what that might look and feel like......imagine.




Sometimes when it is hard to visualise being debt free, using numbers can be helpful instead.

EXAMPLE: Let’s use an average Australian family’s debt load consisting of a very conservative mortgage, a couple of credit cards and a car loan – all of which is just pretty normal these days apparently.

Mortgage -  $1,300.00 per month
Credit Card 1  - minimum payment $60.00 per month
Credit Card 2 – minimum payment $73.00 per month
Car Loan - $395.00 per month

Total monthly debt load is therefore $1,828.00 per month.
That’s $21,936.00 every single year.


Kent pumpkin seeds drying out ready for planting.


So what would this average family’s life be like with $21,936.00 AFTER tax still in their pockets?

Depending on their tax bracket, that could be close to $30,000.00 of taxable income that they would no longer need to earn. The pressure to earn would be off.  That might also mean someone might be able to stay at home full time, or maybe both earners could go part time perhaps.


The soft evening lamp light falls on the clowns and clock


So, what would $21,936.00 of post-tax discretionary money happening each and every year mean at your home? How could this change your home reality?

Imagine if you continued  earning for another 5 years or so after the debt was gone, that could be easily over $100,000.00 savings in-the-hand not needing to be spent on anything.




If we are feeling brave, we can now go and crunch these numbers, but this time, using our own debt load figures……….(are we game enough?)

Write it down – decide to be debt free – have that tough conversation (yep, you know the one) -  make a plan – act on it immediately

There is at least two good reads in this lot!


Take care folks – stay nice.

Mr HM


Lidded ramekins for soups and mini meals

4 comments:

  1. That conversation is a really tough one for a lot of people to have, but it is so important. Instead, they keep piling on the debt until they are drowning without a life preserver.

    ReplyDelete
    Replies
    1. Your are so right Mel - been there done that.

      Delete
  2. Good on you for encouraging people to think about living without debt.

    ReplyDelete
    Replies
    1. It is just so doable Sherri - most folks do not believe that.

      Delete

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