Having the Right Kind of Debt Is Empowering
The cost of believing a lie — a case study
At only 27, “Alan” landed his dream job at a prestigious law firm. His persistent hard work during law school paid off when he received an offer to join the firm as a junior associate. Alan eagerly began his career with the hope of making a name for himself in the legal world.
But as he settled into his new role, Alan was soon confronted with the harsh reality that his ambitions were not without consequence — a daunting amount of student loan debt loomed over him. He had used the loans to cover his tuition and living expenses while in school.
Initially, Alan brushed off the thought. After all, who didn’t have some sort of debt these days? With a decent salary, he assumed he could easily tackle it.
However, as months passed by, the weight of the financial burden began to take its toll. Despite his quite high income, a considerable chunk of it was dedicated to paying off loans.
This left Alan unable to purchase a new car or rent a trendy city apartment like his coworkers, all because most of his money was tied up in debt. As he watched his friends jet off to exotic vacations and indulge in lavish dinners, Alan couldn’t help but feel a sense of longing and disappointment. (Note: Please don’t compare your situation to others. It often breeds bitterness and resentment.)
Is this the price he has to pay for his dream job?
He questioned if his dream job was worth all this stress and sacrifice. He had always been taught that a good education and a prestigious career would guarantee financial stability and success. But now, Alan found himself caught in a vicious cycle of debt, questioning the true value of his achievements.
As time went on, Alan’s frustration and resentment towards his debt grew. He couldn’t understand how something that was supposed to be empowering had turned into such a burden.
While his peers were taking strides towards securing their financial future, he was still grappling with the weight of his loans. It was a harsh realization that his debt was hindering him from achieving his aspirations and ambitions.
One day, after an especially trying day at his job, Alan reached an epiphany. He made a firm decision to liberate himself from his financial constraints no matter the cost.
He took on side projects and worked extra hours to increase his income. He even adopted a more frugal lifestyle, curbing unnecessary expenses in order to save every penny. It wasn’t easy, but Alan was determined to free himself from the burden of debt.
Over time, Alan dedicated himself to hard work and was able to successfully repay all of his loans. He finally felt a sense of relief and empowerment as he saw his debt decreasing and his savings increasing. Gone were the days of financial uncertainty and stress, as Alan turned his financial situation around.
The concept of having the “right” kind of debt is often touted as a means of achieving financial freedom. This usually refers to debt that is viewed as an investment for the future, such as student loans or mortgages.
Before I used to believe this narrative, but now I find myself asking:
“Does having the right kind of debt truly lead to empowerment?”
I believe that the assumption that all debt can be empowering is flawed and may not necessarily lead to the financial independence we desire. Alan’s experience taught me that true empowerment comes from being in control of your finances and not being burdened by debt.
Empowering Alternatives to Debt
While debt can be a useful tool for achieving certain goals, it’s not the only way to achieve financial independence. In fact, there are many empowering alternatives to debt that are worth considering.
Creating passive income streams: This could include starting a side hustle, renting out property, or investing in dividend-paying stocks to generate additional income streams
Living within our means: Embracing a more minimalist lifestyle and prioritizing saving and investing
Saving money: Reducing expenses and putting money into a high-yield savings account to build up a safety net that can be used to cover unexpected expenses
Investing: Whether it’s in stocks, real estate, or other types of assets, investing has the potential to generate significant returns over time. It’s crucial to research and understand the potential risks before diving in, but for those who invest, the rewards can be highly lucrative.
There are many empowering alternatives to debt that can help individuals achieve financial independence. By exploring these options and choosing the path that’s right for them, individuals can take control of their finances and build the life they want.
At times, it may be necessary to borrow a substantial sum of money. However, while certain types of debt may seem beneficial, they are not the sole avenue to achieving financial freedom.
Hi, I’m J.O. I write about living a healthy and peaceful existence amid the constant chaos of life. Follow me and subscribe to my newsletter to see more of me. Cheers!✨
