Although, I do believe debt might be inevitable for a few selected things, such as buying real estate if you want to settle down. However I would rather see this as an investment, which is saving me money on the long-term.

So, they look at someone who is debt free and look at them through the filter of their own spending habits.

They do not see that other people do not eat out or have takeaways on a daily basis. That people do not buy DVDs or CDs every week. That people do not buy new clothes, gadgets and general money/credit absorbing stuff!

I remember at work a young woman came into work looking very sombre. The story was that she had asked har parents for a loan – she lived at home. Her parents had sat her down and gone through their finances.

They ran their home, their lives including holidays and everything on LESS than than their daughter earned. Talk about a wake up call!

They do not look and see th

Contentment is found in wanting what we have, not having what we want.

No.1. buying a house you can actually pay off. The bank wanted to give us a lot more money to buy more house. But we went for about $50k less than the expected amount, because we wanted to pay if off. Might not work in California, but in Ohio, it does.

No. 2 Making an effort to only live on one salary and to save the other or use it to pay off debt. it also helps you weather economic uncertainty. You aren’t stretched to your max when bad times hit.

Will we never have debt again? Probably not. we might buy a car or a rental property and finance it. But again only with the plan in place to pay it off ASAP.

When I was younger and naive I took it for granted I must be better off – and would be generous with very broke friends. Imagine my amazement to eventually learn that everyone who was jealous of our “debt free lifestyle” and assumed we made tons of money – well they all tended to make 2-3 times our income.

!!!!!

I was giving people nice gifts because I Felt sorry for their “low incomes.” Obviously the truth is easier to see in these times. But I appreciate being a financial professional and having so many people reveal their true financial situations – it can be rather shocking.

In reply to WhiteEyebrows – it just doesn’t have to be that way. If you think the only way is to take a lifetime, so it is… Sometimes you just have to think outside the box a bit.

I see no problem with people saving up a decent down-payment and getting a mortgage. Just be careful and buy a home that you can EASILY afford and still have other income for the remaining necessities in life and upkeep on the home. Then, try your best to pay that mortgage off as early as you can. Make it Priority #1 with any extra money that comes in being thrown at the principal.

John DeFlumeri Jr