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

Now we have identified the roadblocks that keep us from living more financially secure lives. Next we will focus on where we stand and where we are headed financially. In the next several chapters we will learn how to:

1. Deal with the reasons why we are in debt.
2. Determine what our total indebtedness is.
3. Discipline ourselves as we follow through with our plans.

What are Your Lifestyle Priorities?

H. L. Hunt admits that he did not have a grade school or high school education. Yet that did not stop him from becoming a Texas oil billionaire. His words of advice are: "Decide what you want. Decide what you are willing to exchange for it. Establish your priorities, and go to work."

What are your priorities? In numbers one to five, choose the statement that comes closest to your desires or behavior.

1. When it comes to automobiles, I like:

a) the newest model available.
b) dependable transportation.

2. I would like to live in a home that:

a) is in a new neighborhood.
b) comfortably fits our family's needs.

3. When I buy clothes:

a) it doesn't matter how much they cost.
b) I look for sales or bargains.

4. When I get a bonus check or extra money:

a) I spend it on entertainment or recreation.
b) I put it in my savings for future needs.

5. My miscellaneous expenses each month are usually:

a) over two hundred dollars.
b) under two hundred dollars.

If you answered with three or more "a" statements, you probably spend more than you earn and make decisions based mostly on your emotions.

If you answered with three or more "b" statements, you try to be a more responsible consumer and you see the need to have resources set aside for future necessities.

A basic concept in economics is needs vs. wants. It is the "wants" part that tends to get people into trouble financially. There's nothing wrong with having "wants" as long as they don't get in the way of a family's basic needs. Unfortunately, some people think that prosperity is that wonderful time when they can always get enough credit to live beyond their means!