Do you know what the number one money myth is? Well, of course, that is a matter of opinion, but in my experience, I believe it is this: You must have debt to function financially.
This is a big myth and I want to bust it right here and now. You can live a very good, normal and wealthy life without ever having debt.
First of all, if you never have debt, you will always have money. Your income, whether great or small, is your greatest wealth building tool. Therefore, if you waste your money on buying things without cash and spending large fees and interest for that privilege, you are giving away your most important financial tool.
Many people, old and young, live with the notion that you can’t make certain purchases without going into debt and this is simply not true. Even people who don’t use credit cards believe that the only way to buy a nice car or a home or to go to college is with a loan. And this is simply not true. If you never have debt, you can save up and buy a nice car or home with cash or work and cash flow your way through college. This may take longer than debt would, but that means the truth is a lack of patience not a lack of ability. For me, debt was the easy way out. I wanted something so I just used debt to get it and figured I would deal with it later. But nothing worth having ever comes easy. And a life debt free and financially free is definitely worth having.
The other main justification for debt is that you have to have a FICO score in order to have anything. This is not true. A zero FICO score is more impressive than a high FICO score because it means you have used cash and wisdom to get the things you have. The only way to achieve a zero FICO score is to not have debt. A FICO score is equal to a “I use debt for my financial solutions” score. Every element that makes up the FICO score involves the word debt and debt equals risk. You must have debt to have a high FICO score, but a zero score should be your goal. You can have everything that you want and need with a zero FICO score with the added bonus of having wealth as well.
So now that the myth that you must have debt to exist, financially speaking, has been busted, what is going to be your excuse for keeping your debt? I hope you can’t find one because this will be the first step in getting rid of your debt once and for all. No matter what your debt situation is currently, with time and hard work, you can obtain the ultimate goal of no debt, a zero FICO score, and wealth. What could be better than that?