If you were to go to any city and interview people on the streets, ask any friends or relatives or co-workers at your job and ask them: “Would you rather be in debt or out of debt?” what to you think the percentage of each answer would be? 50/50? 60/40? 100/0?
Lets face it, very few of us WANT to be in debt (I am avoiding saying “no one” wants to be in debt because I always get that ONE person who…. ) 🙂 but in as much as few of us want to be in debt, many of us make several choices, on purpose, daily that actually put, or worse yet keep us in debt. As soon as we fall into the matrix of debt and compound interest we are often trapped. Compound interest is the eighth wonder of the world. With this wonderful creation, we can all wake up more broke than we were when we went to bed the night before! 🙂
In 1999 Warren Buffet was speaking to a group of students in Nebraska about financial success and the three most important principles he shared were:
1. The most important thing to do to succeed is get out of debt. “You cant make financial progress borrowing money at 18-20%”
2. The second thing to do is stay out of debt.” He said “It’s way easier to stay out of trouble than to get out of trouble.”
3. Invest in yourself! He talked of reading, not needing big name schools with big dollar tuition and getting your mind prepared. “Your best financial future is your own ability and the capacity to use those abilities to their potential.” and “The biggest thing for your financial future is your self.”
It is interesting that Ben Franklin years before also advised:
“An investment in knowledge pays the best interest.”
I will add the talk from Warren Buffet soon!