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Debt is a Death Monkey
One of the biggest parts of Lifestyle Design is our ability to reduce our overall expenses which seem to grow very high, locking us into a lifestyle we don’t want.
If you’re looking to take a year to travel around the world (like me), you can easily eliminate things. You can leave at the end of your lease, so you don’t have to pay rent. If you have a car, you can cancel insurance (except theft) and you don’t have to put gas in it. You can also say goodbye to your electrical bill, expensive gym, rented movies, etc. The one expense you can’t escape, that will follow you to every country you travel to, is your debt. It’s something that must be paid and there’s no escape from it. You can escape rent from home, but you’ll have to pay for it as you travel. You can’t escape that either, but you can rent a bamboo cottage in Laos for a dollar a night. It’s a lot different than paying $800/mth for your cramped one bedroom apartment. Debt on the other hand doesn’t change. If you owe $500/mth, it’s going to cost you that amount in any country. It doesn’t matter if it is the cheapest third world country in the world. Eliminating debt is an essential part of lifestyle design. I don’t have much debt, but I’m still attacking it. I have my student loans and I have a little bit of credit card debt. I decided in June that I should probably take my debt on and try to rapidly pay it down. By the end of August, I should have all my credit card debt paid off. Than it is onto the monster juggernaut, my student loans. Sit down and make a plan to attack your debt. The more you put on it, the better. If you have a loan with a 10 year term at $250 a month, if you decide to put on $500 a month (double), it will be done in more than half the time. Even though the direct math would associate $250 = 10 years, $500 = 5 years. The fact is that when you eliminate the ability of a loan to compound interest, you can eliminate it faster and end up paying less. I’m sure all you already know that. I knew it from an intellectual point of view, it just wasn’t in the front of mind for applying. That’s why I say it now. Attack your debt, eliminate it, so you have one less expense to worry about. July 19 2008
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