Debt Nation: Forget About The Joneses And Stay Debt-Free
Everyone knows about the Joneses. Your next door neighbours are probably the Joneses. They are everywhere – in every neighbourhood. In every school. They are even in your place of work.
are the lovely couple that you can’t help but keep up with. You see them leave
home in their luxury cars. On weekends, you see them hosting a backyard BBQ
with family and friends; the children frolicking in the swimming pool.
are always brandishing the latest mobile phones and technology devices. They
wear the latest fashion styles and accessories like watches. Everyone wants to
be the Jones kids. They have thousands of followers in social media.
are not! Our next door neighbours are the Smiths!”
them as the Smiths. But in your mind, they are the Joneses.
their cars. You want that 2-tier, stainless steel charbroiler with the radiant
oven. You want a pool to host backyard parties for the summer.
nag you to get the same mobile phones, devices, shoes, clothes, and watches as
the Jones kids. They want to be cool in school like the Joneses.
You want to
live the Joneses’ lifestyle. The problem is you can’t because you can’t afford
Trying to live like the Joneses’ is
to live beyond your means.
into debt because they want to live a life they cannot afford. Their 9-to-5
occupation does not pay well enough to cover a car loan for a Mercedes. Not
even a Prius.
monthly cash flow cannot afford monthly payments for a swimming pool or
instalments for the latest mobile phones, watches, and fashion.
they make is just enough to cover monthly expenses for power, water, telephone,
groceries, cable TV, and set aside some savings for tuition and maybe – just
maybe – a family summer vacation.
over the edge, they resort to acquire the lifestyle through debt. So they
borrow from wherever they can:
- Company Loan
- Salary Advances
- Credit Card
- Personal Loan
up with a cash flow projection and tell themselves, “All I need to do is put in
the extra hours, get a side line job or get a side project to cover the extra
expenses and I’m good.”
not because you probably won’t.
work are unpredictable. You don’t know what is going to happen today, tomorrow
or next month.
That is why
you should always save and set aside money to cover contingencies.
If you are
neck-deep in debt, you will leave yourself vulnerable to unforeseen circumstances:
- Medical Emergency
- A decline in business earnings
- A death in the family
- Serious illness that requires constant medication
present situation becomes adverse, you could lose everything if you are trapped
lose more than the shirt off your back.
lose your house.
may have to transfer schools – to one that is more affordable.
creditors will run after you. Haul you into court. If you can’t pay your taxes,
the government can go after your savings.
acquiring debt, why not work harder?
- Put in the extra hours at work
- Get a side line job
- Get a side project
Leave the Joneses alone and stay out of debt.