January 13, 2009
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Avoiding Debt
I feel pretty lucky. The economy has taken a big hit, but my lifestyle hasn’t changed a bit. I think the reason is that I avoid debt like the plague.
- I own my car (I financed it new for 36 months and paid it off 4 years ago – and the car is still like new)
- I have paid down my mortgage by sending an extra $250 every month, so that my equity is double what I owe (which will give us a nice down payment on our next house). We didn’t buy the biggest house we could afford. In fact, we bought a house that was worth about 1/4 the amount we were approved for.
- I use one credit card and pay it off every month.
I live within my means.
That. I think. Is the key.
Comments (4)
It is the key. We live in a time when so many people think they’re entitled to every luxury under the sun, whether they’ve earned it or not. Of course it also helps to be working for a company that hasn’t gone belly up.
That’s what I’m looking to do. But I’m not sure how on this salary, and only one at that.
@Gneiss_Guy - Yeah, I should add that I have a great job and make a very nice salary. We have funds for at least the next three or four years to stay in business, so I’m not toooooo worried about it. Though I know from my experience at my last company that no matter how loyal you are and how good your reviews are, no job is guaranteed.
@nevragn - Yeah, it definitely helps to have a salary that will cover all your bills and leave you enough left over so you have some flexibility.