The Art of Debt-Free Living : Excerpt from Chapter Two

I doubt that people make a conscious decision that they will live a life of indebtedness to others. So, just what causes people to get caught in the debt cycle? Before we can attempt to change our spending habits, we need to address the real reasons why we choose to live as we do and the consequences they produce.

What are the roadblocks that hinder us from a life of financial freedom? Let's take a look at them now. These include:

1. Our misconceptions and beliefs
2. Spending more than we earn
3. A lifestyle of consumption
4. Overestimating the importance of wealth
5. Making assumptions
6. Denying the problem
7. Unwillingness to persevere and save
8. Ignorance in planning
9. Gambling
10. Blaming others
11. No true desire to become free of debt

Our Misconceptions and Beliefs

Our misconceptions about life and money affect how we live and use our money. Some beliefs individuals have are:

• "Showing high social status is important to me."
• "I can always get money from my parents."
• "When I get a raise, then I can afford to buy a new car (or home)."
• "I'm too busy to take the time to plan a budget or look at my finances."
• "Eat, drink, and be merry, for tomorrow we die!"
• "More money will make me happy."
• "I thrive on having a high debt level, because it forces me to work harder and make more money."

By contrast, beliefs that some individuals may have are:

• "Money isn't the end goal; it's a resource used to attain other goals."
• "How I handle my money today says a lot about what my finances will be like tomorrow."
• "I can only spend a dollar once."
• "Money doesn't grow on trees."
• "Borrow sparingly.