Wealthy people are known as those who have enough possessions, resources, and assets to be financially comfortable. The term “wealth” is actually a relative concept had have different meanings across societies and cultures. Here in the United States getting “rich” has become the top goal for many living here. Getting “rich” meaning having more than just what you need to survive but also be able to afford all the things you want and don’t necessarily need. This is very hard to achieve for those who start with nothing. The idea of debt is easily sold as a stepping stone to getting “rich”. The fact is most people will just end up in a heap of debt instead of getting “rich” and possibly end up worse than they started. There are ways to build wealth safely without using debt. For example using prepaid reloadable cards instead of credit cards is a much more sensible way to spend.
First let’s address the myth, “debt is a tool and should be used to help create prosperity.” Debt isn’t used by wealthy people nearly as much as we are led to believe. Also, debt doesn’t always make sense. Most normal people are just plain broke because they are in debt over their heads. This myth has been sold to us so that we will think we need to use other people’s money (OPM) to prosper. However, those who sell this myth are profiting from our interest rates, our foreclosures, repossessions, and late fees. When we blindly believe in debt, we fail to acknowledge its risks that will destroy the perceived returns. It might take losing everything you owned and finding yourself bankrupt to put it into perspective.
One of the ways people find themselves in a heap of debt is by not being able to decipher between their wants and needs. Marketing tactics of big corporations make us think we need things we really just want, and that we need those things right now. The idea of debt gives us the feeling that we can buy a home, a car, start a business, or go out to eat and not be bothered with having to wait or have to funds up front. This instant gratification factor is what makes debt so enticing. In a way, debt is like a tool, allowing us to lift what we otherwise could not lift. In reality, debt is more like a two-edged sword, which would cut for you like a tool but could also cut into you and bring harm.
What are your standards for being rich? In other words, what do you envision when you think about being rich? This can be different for everyone. Prestige is the motivation for many people. A lot of people associate the idea of getting rich with getting respect. It may seem in this country that only people with money have power. Or more simply, early retirement could be the motivating factor for some. Some people just want to get rich so that they never have to work another day in their lives.
Are you in debt and having trouble paying your bills? Getting dunning notices from creditors? Are your accounts being turned over to debt collectors? Are you worried about losing your home or your car? If so then it is time to take control of your finances and pursue the American dream. Are you willing to make the sacrifices it takes now, in order to reap the benefits later without having to worry about repossessions, returns or foreclosures? There are a few things that will help you get on the right path. First of all STOP spending money you don’t have! Cut up all of your credit cards and only shop using a prepaid credit or debit card. Second, start saving!! Put aside a little money each check and don’t touch it!! You can also save by looking for sales, using coupons, and cutting back on things you don’t need! Try to cut out at least one unnecessary purchase per week.