Is Debt the American Dream?

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For many of us, we are taught the "American Dream." It goes something like this. Graduate college, get married, buy a house, buy new vehicles, have a couple of kids, maybe buy a boat or other recreational vehicles, and go on extravagant vacations.

In theory, this sounds amazing! You're living the life without a worry in the world. Whoa! Put on the Brakes. This may be the case for a few who ride off into the sunset without a hitch, but the reality is this isn't the case for most people.

For many people, their household income doesn't support this type of living. They end up overextending themselves and and in a mountain of debt because society tells us this is what we are supposed to do. We aren't making it if we don't have a new car or aren't going on regular vacations.

Unfortunately, many people do not realize the incredible amount of stress debt places on you until they are already in it.

In an effort to resolve the issue, it is common to say, "Okay, I need to make more money." As someone who has been there and done that, I can tell you this is never the answer.

In my experience, trying to make even more money to keep up your unaffordable lifestyle only exacerbates the issue. You end up frustrated, burned out, and feeling more hopeless than ever.

Here is a better way to go about it. Downgrade your lifestyle. The freedom from being out of debt is way more valuable than what others may think of your less-than-glamorous lifestyle. Trust me, from your perspective, you will be the richest person on your block, and here's why.

Suddenly, you won't spend every waking moment worrying about bills. Your stress levels will go way down. You will have more time to spend with your family and friends. The things that you do get to do will be much more meaningful when you know you can actually afford them.

Here are some tips for getting started:

* Create a detailed budget so you understand where your money is going.

* Downgrade what you can. Sell vehicles you owe a lot of money on for ones that are more affordable or that you can pay cash for.

* Consider downsizing your home if it makes financial sense.

* Sell any recreational vehicles that you owe money on.

* Sell anything you do not use anymore.

* Do not finance anything

The bottom line is that living a simpler life within your financial means will ensure you only purchase things you can afford. Don't worry about what society says you need, and focus on what you need to live a fulfilling life. Trust me, you won't find it in material things.

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