Freedom from Debt

"American's have stopped making things. Instead, our wealth is built on credit. The more we borrow the richer we feel, when in fact nearly every asset we own is made in some other country that we paid for with borrowed money."
- Mike Ward, publisher of Agora Books (publishers of Empire of Debt)




Here's an interesting look at American citizen's debt (Canada can't be too far off):

http://www.ihatedebt.com/ALookatDebt/CurrentStateofDebt.php

Some interesting (and sad) highlights:

• Only 2% of American homes are paid for.
• On average the typical credit card purchase is 112% higher than if paying cash.
• Over 40% of U.S. families spend more than they earn
• The average household has 7 credit cards.
• The average household has a total credit card balance of approximately $25,800
• The record number of bankruptcy filings was 1.44 million in 1998 until 1.49 million were filed in 2001.
  

USA Today reports that, of the 23 greatest fears identified by Americans today, #3 was inadequate Social Security, and #4 was not enough money for retirement.

Suggestion: get out of debt asap, and begin building your savings as early as possible (at the same time as getting out of debt). To build assets while reducing debt simultaneously gives a psychological boost. Building a saving at the same time as eliminating debt is also important due to the effect of compound interest on your savings/investments.

For calculated, smart debt elimination planning (that could save you a significant amount in interest), I suggest a simple but powerful software called DebtEraser.

As well, for continuous learning in the crucial topic of personal finance, I suggest bookmarking the following resources:

http://www.getrichslowly.org/blog/

It is my personal motto that in order to be free of the burden of money, one needs to have money. This requires learning how the flow of money works and how to manage this flow properly.

http://zenhabits.net/2008/06/how-i-paid-off-35000-in-debt-and-how-you-can-too/ (contains interesting ideas on "debt snowballing", but with DebtEraser you can simply pay off faster and save on interest)

The keys to successful debt elimination: ruthless self-honesty, having a plan (based on knowledge), and beginning today, using your plan as a roadmap until the goal is reached.

And for knowledge on how to generate and increase income (no matter what profession you're in), here's a book I suggest for everyone's library:

50 Prosperity Classics

This blog post is dedicated to your health, happiness, and prosperity.