I thought six figures would bring financial peace.
Instead, I found:
• Debt
• Car payments
• Credit card balances
• Stress
Income and financial peace are not the same thing.
I remember getting paid and feeling relieved.
Then watching most of it disappear to payments I’d committed to months or years earlier.
That’s when I realized debt wasn’t taking my money.
It was taking my future.
Debt doesn’t just steal your money.
It steals your options.
The job you can’t leave.
The opportunity you can’t take.
The dream you can’t fund.
The peace you can’t buy.
That’s why I wanted out.
A caller on Dave Ramsey's show wanted to borrow more to keep cash for renovations. Rachel and George advised putting the $115,000 toward the new house, lowering the mortgage payment, avoiding PMI, and paying for renovations later with cash.
Caller:
We're selling our house and will have about $115,000 in equity. People are telling us not to put 20% down on the next house and instead use the money for renovations.
George Kamel:
Who's telling you this?
Caller:
Our realtor and some banks.
George Kamel:
Of course banks want you to borrow more—they make more money that way.
Rachel Cruze:
If you put more money down, your mortgage payment is lower, giving you more room in your budget.
Caller:
They're saying we can renovate first and lower the payment later.
George Kamel:
Why play all these games? You can avoid PMI entirely by putting the money down now.
George Kamel:
Put the proceeds from your home sale into the next house.
Rachel Cruze:
Then cash-flow the renovations over time.
George Kamel:
The goal is to get out of debt, not create more of it.
Getting out of the debt should be the goal .
@LeadersJunction Absolutely! I had horribly money habits at 25. Fixed it by 32 and now my money is finally starting to work for me.
That six figure salary didn’t mean much with my horrible money habits.