Chapter 2
Soul
Crushing Debt
Honestly,
I know
some people are already losing interest in this
financial babble. But, if you are serious about owning our own place
debt-free, you have to learn to get focused on getting out of debt
first.
We
ended the first chapter with the fact we were basically,
hard-working people in debt up to our eyeballs. Then a friend had a
conversation with us and handed us a book entitled "Aftershock" that changed our thinking entirely. We sat down and had a talk and
decided that we had to change our way of life before it was too
late...
While
I don't ascribe to all of their solutions, what I found was real
assessment of the financial crisis the United States in currently
experiencing. This was the impetus for us finally making the decision
of getting out of debt & actually owning our home and cars.
First,
I would like to to pause right now and find an envelop, any envelope
will do. In fact I think it would be ironic if you happen to find an
envelope that your credit card bill came in.
Then
find $20 and put it in the envelope. Hang it on our fridge (next to
your goal maybe) or put it in a drawer. I prefer the fridge. This is
the beginning of you savings at home.
Now
is
the time
to start tightening your budget.
While
this is a silly video, I think it illustrates how people often think.
If you start with disciplining yourself to set aside real money for
your purchases, you will be
further
ahead
than most people.
Don't
buy stuff you CANNOT afford
If
you don't have any money, you should not buy anything
If
you want something and you don't have any money...you don't buy it
Seriously,
if you don't have the Money Don't Buy it
It's not that confusing.
My
dad was the son of a coal miner in Southern IL. There was this song
my dad used to play on the record player the title was “Sixteen
Tons” by Merle Travis and sung by Tennessee Ernie Ford, the chorus
went like this:
“You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store”
“You load sixteen tons, what do you get
Another day older and deeper in debt
Saint Peter don't you call me 'cause I can't go
I owe my soul to the company store”
In
that era working as a coal miner, led to soul crushing debt. The coal
mining company would pay the workers with scrip coins, which in turn
could only be spent at the company store. Their scrip pay didn't
match the cost of the inflated prices at the company store, therefore
the miners only got deeper in debt each day. That is why the songs
laments, “I owe my soul to the company store”.
While the
scrip pay system was abhorrent, credit card debt and mortgages even
more heinous. Not only are you in debt, you pay much higher amounts
of money in interest. You ultimately will be paying much more money
back, sometimes up to 30%.
Coal Mining Company Scrip Coinage
In
some ways I want to apologize that these are not happy posts, But, the
reality is we got into debt on our own & it's time to pull up out
boot straps and start be accountable to ourselves and our families.
We started this series to show you how we paid cash for our new home,
in the end it's all about focusing on getting out of debt.
Are
you ready to stop owing your soul to someone else? Have
you started the “CHALLENGE”?
Did you tuck your $20 in an envelope?
Did you tuck your $20 in an envelope?
I'd
really like to know if you are still with me here,
if
so
pop back on Facebook and respond with $20.
Feel free to join our community at Perky Gramma Teaches on Facebook. We have a nice little group of people and we share various vintage skills & tips. It's all about the journey of farming/homesteading.
I participate in the Amazon Associate program, where I receive a small % commission for linking products that I recommend. I only recommend products I personally used and like. Your support is very appreciated, anything you choose to purchase through my link, is helping me to be able to share more things that I do with you. Perky Gramma Teaches Amazon link.
Chapter 1: You Must Be Rich
No comments:
Post a Comment