Stop Normalizing Debt
They tell you never to ask for a man's salary. But why? Why is money a taboo in our society? Honestly, it's gotten a lot better over time.
I think one of the main issues is that people normalize having a negative net worth (debt). I believe that debt shouldn't be a taboo because it is actually the most powerful wealth-building tool ever (if used correctly). But of course, it's a double-edged sword that can easily stab you in the back.
But people often don't understand that their debt jokes are often underlying issues in their financial mindset.
At least I only have X amount of debt.
Oh, I can pay off the credit card later!
Interest is just a matter of using someone else's money. After all, today's money is worth more today than later.
I can't beat the credit card companies anyways.
These are just a few of the things I've heard in my lifetime, even at my age. But these highlight serious underlying issues of how people normalize their debt.
For one, it doesn't matter how much debt you have. It matters what your plan is with it. See, a low-interest house mortgage is one of the best-used debts as it allows you to leverage a small amount of money to purchase a large investment. But a 15% credit card debt will compound largely overtime. If you approach a 15% credit card debt with the rule of 72 (a rule that roughly estimates the time in years for the doubling of a number), 72/15 is 4.8 years. This means that if you owe 10,000 on your credit card, and only pay the minimums, you'll likely double the balance in 5 years. And in another five years, your 10,000 of debt will be somewhere in the 40,000 ballpark.
Also, while it is true that credit cards allow you to buy things and pay later, this can become sour very quickly. The question is if you have the discipline to only spend what you can afford. Credit cards and their limits give an illusion that you can afford more than you actually can. So, one of the few things you could do is to automatically pay off your credit card by linking a checking or savings account. You could also simply place small items such as subscriptions on your credit (to build your credit score), but use your debit for larger purchases such as groceries.
These are just a few of the common issues that people try to normalize. There are many more, and this obviously isn't an exhaustive list. If there is anything you'd like me to tackle specifically, let me know!
I just wanted to show you that seemingly small jokes that people say on a daily basis can be largely caused by underlying beliefs and that these beliefs can be solved quite easily with some conscious thinking.
Live intentionally.