Debt free

From Debt Free Dude
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Being debt free can mean quite a few different things to different people. For some people it means having no consumer debt on quickly depreciating items. This definition generally excludes loans for things like houses, cars, and college education. A more common definition includes freedom from any type of debt outside of a home mortgage. Of course for others being debt free means just that--no form of debt whatsoever.

Einstein once said that the greatest discovery of all time was compounding interest. Usually people use this to explain why you should put money into the bank. However, I would like to suggest that it works the other way. The most dangerous thing you can come up against isn't terrorists, gangs, organized crime or war. The most dangerous thing in the universe is debt.

The reason debt is so dangerous is the same reason that compounding interest is so powerful. Money produces more money. Debt produces more debt.

There is a very close relationship between your personal freedom and the way you handle money. Notice I didn't say that there is a close relationship between your personal freedom and the amount of money you make. There are many people who make a tremendous amount of money, but are still bound by debt because they live so far beyond their means.

Living debt free is about more than just not having any debt. It is about managing your finances and investing in ways that are financially wise.