How to Live Without Debt

Written By: Dan Stanley  |  Posted: Tuesday, April 13th, 2010

It was to my advantage to grow up in an era when many people bought everything by saving up for it, then buying it. Cash was not only king, debt was taboo. My father in 1951 bought his first house for $2, 500. He paid cash for it. Mind you $2, 500 then is equivalent to much more today. My uncle, who had never borrowed, thought at the age of about fifty to borrow $800. I was with him when he borrowed it. Two weeks later he went into the bank and paid off the note. He could not stand being in debt! Well, as they now say, we have come a long way baby. Today it is thought impossible to grow up, marry and raise a family without debt. In fact, it is rare to find anyone who has never borrowed. We assume it is necessary to borrow if we want to own a car or home or go to college. So please allow me to enlighten you, if I may humbly do so. It is not necessary to borrow money. You can live and live (in America) well without ever borrowing money. We have been sold a bill of goods in regards to the supposed need to borrow for homes and cars and education. We have been made to think debt is necessary, when it isn't. How, then, can a person live without incurring any debt? Here are some principles to follow.

First, start when you are young. That means for many of you reading this to have your children develop the habit of saving for whatever they are going to buy. Recently I was searching for a piggy bank for one of my children. It was hard to find one. Use whatever means necessary, but have your children begin to save. This savings needs to be two fold. Have them save for things they want to buy that are smaller items. Maybe a bicycle or model car or doll. Have them also save money that is long term for large items, especially for a vehicle and home, which are the largest items they will no doubt purchase. This savings can start with the first monies they get for birthdays or doing odd jobs for the neighbors. You decide what percentage they need to save, but set an amount and don't deviate from it. If you do this when they are small, by the time they are eighteen or twenty they will have a very sizable amount of money. Under normal circumstances they will, by the age of twenty five have enough for a home.

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