Today in the news, a man from Los Angeles, California named Arthur Winston retired at the age of 100. He worked in the mass transit system since 1934! I did not even know they had a transit system in 1934. In his 70 plus years of working, he had only taken one sick day. I thought this was a nice story, but what really caught my attention was when they asked him what his secret was to staying alive and kicking for so long.
He replied, “I pay CASH for everything” among other things that he listed for his secrets to staying alive and healthy. I thought this was so interesting that one of the top things that this man listed as something that kept him alive for this long was paying cash for everything that he bought.
I do not know if it makes sense to you, but it makes sense to me. Imagine life without any payments. Imagine never having to worry about someone taking something from you or calling you every day or writing you every month to tell you that you them money. Don’t you think that your life would be less stressful? Do you think that you could live a healthier life with less stress in your life? No one can deny that debt brings on stress. You constantly think about ways to pay it off or ways to creatively play with it.
For those of you personal financial experts that are still convinced that debt is a tool, I pose one question to you: would you rather live till your a 100 years old, or would you rather own a credit card that charges 5% interest and you invest it at 5.5% interest into a CD to make a whopping .5% interest on it. I read about this crap all the time on the internet. People are always talking about ways to beat the credit system. The funny thing is that I never hear stories about people actually beating the system. What I usually hear is people around my workplace joking about their horrible credit or their unbearable debt load.
The moral of the story, don’t treat your personal debt the way a business treats its debt. You’ll get burned every time.