THE DEBT GAME
Updated: Mar 30
The debt game is real. Individuals are falling further and further behind in debt, while the banks are winning the debt game with your money.
Our mismanagement of debt usually starts the day we sign up for student loans or with our first credit card when we are eighteen years old. The credit card companies have your letter of invitation to join the club of “free” money the day you turn eighteen! All the stuff you could possibly want is now available to you, all you have to do is swipe! The worst part of this, we don’t even know what we are signing up for because, at eighteen, we barely know the value of a dollar, let alone tens of thousands of dollars for which you could find yourself in debt.
The average college student graduates with a bachelor’s degree and $23,000 in student loan debt, which takes an average of 20 years to pay off.
What chance do we have of being financially successful, if going to college means being in debt for the next twenty years?
Moreover, there are other forms of debt rapidly approaching that will add even more years of work to our lives.
Debt translates into hours of work owed!
Incurring debt means you are spending hours of your valuable life to pay back the bank.
Nearly, eight out of ten Americans say they are living paycheck to paycheck. That’s right, 80% of the population are solely dependent on the next payday to buy groceries and to put a roof over your and family’s heads. That doesn’t sound like financial freedom to me.
The banks are really good at enticing customers into signing up, for cheap money, “low-interest”, instant loans for expensive cars and homes, which take many years to pay off. What chance do anyone of us have once we start down the path of dependency on the banks? The banks win, the individual loses, apparently 80% of the time.
I want to make it as clear as possible: the banks get rich from your debt, not you!
The last statistic which ties it all together is that 80% of the population die in debt. Most Americans are forced into the system of debt dependency, living paycheck-to-paycheck, and dying in debt, without ever knowing there are alternatives.
For this reason, I wrote a personal finance novel for teens and young adults. My goal in writing The Franklin Fi was to tell a fun story that kids and beginning investors can relate to while teaching them the personal finance lessons and mistakes I have made throughout the course of my life. I highly recommend you choose this book, or other books, blogs or articles about personal finance to get started learning about how you can avoid the debt trap.
It is not my goal to tell you how to invest. Rather, my goal is to inspire and teach you how to live a simpler, happier life, less dependent on debt and stress.
You don’t want your legacy to be that you died in debt. Make the choice to learn how to manage your finances and live debt-free. Never forget, the day you stop learning and creating is the day you stop evolving to the person you dream to be.