4 Benefits of Living Debt-Free

11:10:00 AM Rhea Mocorro 0 Comments

Image from safepaydayloansonlinetoday

Freedom from debt is the dream of some and the reality for others, whether it’s a small amount, or one that’s large and soul-crushing.

Some will remember the feeling of elation you get when you finally see that the balance on your credit card statement is zero, or when you pay off the loan you took to get your car.

Aside from the happiness you’ll get once you’re debt-free, here are four more personal benefits.

1. Anxiety Relief

One common thing that people in debt have is an uptick in anxiety. They’ll worry so much about the money they need to pay off that it impacts your health. Knowing that you need to pay a certain amount on top of your expenses can be harrowing.

The relief you feel when it’s all paid for is the essence of the expression “nabunutan ng tinik” once you’ve paid all that down, and it’s one less financial obligation.

2. Changed Financial Habits From Lessons Learned

Being out of debt leaves you with a lesson in spending, making you a better spender when you actually need to.

The lesson you learned is one you can impart to people in your life, and apply to any spending you make in the future. Some ways of spending can be life-changing – like taking that language course you’ve wanted, or pursuing the dream of traveling.

Don’t look down on people who’re wading through it if you’re someone who’s never had to deal with debt. Being debt free is a goal that everyone should aspire to, regardless of their current financial state.

3. More Money

The extra money that comes from having paid off your debts will mean extra money to put away as savings. It also means that you can invest more.

 Another place that the extra money could go to is a “fun fund”, or money that you put away for that big purchase. There’s no limit to what you could do with the extra money that you have, now that you’ve freed yourself from debt.

4. Freedom to Prioritize

You’ve still got bills pay, that’s still true even after you’ve paid off your debts. The difference is that now, you can put the money into the most important bills, and still have money left over.

The debt you paid off also means no more interest that eats into more of your hard-earned cash. You are now free to prioritize an emergency fund or the funds for your eventual retirement.

Don’t look down on people who’re wading through it if you’re someone who’s never had to deal with debt. Being debt free is a goal that everyone should aspire to, regardless of their current financial state. Reaching that state means having the financial discipline to stay out of debt, a slow and steady climb though it might be.


About the Author:

Kyle Kam is a Digital Marketing Specialist of MoneyMax.ph, a financial comparison website aiming to help Filipinos save money through diligent comparisons of financial products.


P.S To those doing the 52 Week Money Challenge, it is Week 13 already! Did you deposit the next amount yet?

P.P.S Want to know more about investing, savings, stock market and more, check out my reference here. You can download free ebooks and resources too. 

P.P.P.S I am also sharing my stock market secrets and information via these resources.

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