In 1996 I decided to concentrate my income (40k) and I started paying off credit cards (80k), the house (60k) and cars (5k) debts. I've been debt free since 2005. I now save an average of 45% of my income into a 401k and separate savings. Having no credit card debt is like getting a 18.99% pay increase since it's NOT paid as interest to the banks! Having no bills except monthly utilities allows you to choose what to do in life and to help others. Having no debt means you are no longer ensalved to the banks and government. I invest the savings into dividend paying stocks like Smuckers/Kelloge (food), Windstream/Verizon (communications), Sherwin-Williams/RPM (paint), IBM (computers/services) and other solid companies with actual physical products that people need and want. That generates additional income for when I retire, although I expect to have a 401k that is at least $1m.
Debt free is best
of OH
@
Nov 22, 2009 06:48:38 AM
Kimberly Palmer, senior editor for U.S. News & World Report, writes about how to save money, avoid scams, manage debt, and be a savvy shopper. Send your personal finance questions to her for expert money advice.
Debt free is best of OH @ Nov 22, 2009 06:48:38 AM
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