The Honor of Being Debt-free
I recently purchased a car and a lot of people asked me why I opted for a used one when I could have just gotten myself a car loan for a brand new ride. The thing is, aside from the fact that I didn’t want to spend a lot of money on something whose value will depreciate by as much as 40% a year after its purchase, I’ve never really liked the idea of a loan. Besides, my used car looks like a complete beauty beside my dad’s clunker; it runs smoothly too so I’m happy enough with it.
A lot of financial experts will probably criticize people like me, but I just don’t enjoy the idea of owing anybody money, even for strategic financial management. In fact, the only reason I choose to use a credit card is to generate rewards points (which we use to buy things for free). I may seem like a simpleton right now but I don’t care. Also, I’ve never been one to purchase anything that I cannot afford; if there’s something I want that I cannot afford yet, I wait — it doesn’t matter how long — until I have enough money saved to make the purchase. I learned all these from my dad who’s not a rich man but is free from debt. The only time my father owed someone money was when we needed to pay land taxes and the people who owed him money still hadn’t paid him. My dad made sure to pay that loan right away; he even looked into liquidity solutions (he has paper assets that are quite valuable, which can be turned into cash) but thank God, scrimping was enough to pay off the debt so my dad’s back to being debt-free again.
Not owing anybody money is great, but it comes with a setback — people borrow money from you. My dad and I are rather popular when it comes to this activity; people borrow money from us, which isn’t really an issue unless they don’t pay. Unfortunately, I have a few of such borrowers, but it’s worse for my dad because has a lot, and for big amounts, too. The ugly issue here is that we see those people who borrowed money showing no urgency or even any intention of paying back what they owe us, and they live such “comfortable” lives — they have gadgets we don’t own and other assets, plus, they travel a lot too. Here we are living modestly to stay financially afloat, while those who owe us don’t seem to be with any care. Shameless fools!
My dad said, a lot of people quickly throw honor away whenever and wherever money’s concerned…after all, you can’t eat honor; however, no matter how difficult it feels better to be empty in the stomach and know you don’t owe anyone, than to be full and have somebody disparage you for taking what’s theirs.
So, I am very happy with my car. It was paid in full and I don’t have somebody telling me that I got something that I wasn’t fully prepared for financially. Moreover, every night, I go to sleep free from worry about whether or not I will have money in the future for remaining payments.