Today’s society views debt as a normal way of living. Especially, with 65.9%  of high school students attending college right after college. As a college graduate, I’m happy to say that my life is probably better than how it would’ve been if I didn’t go to college however, if I had it to do all over again I would go to a community college and major in journalism and work my way up. Debt is not normal. Debt is just another form of slavery. Unfortunately, college students don’t realize this when they enter college all they consider is the prestige of the school. My professor at a community college I attended for summer school said, “University presidents shouldn’t be called presidents, they should be called CEOs.” I think there is some truth to this because colleges sell the American Dream to college students but when they get out in the real world its completely different. I’m not opposed to college but if a prospective college student asked me about college, I would tell him only go to university if you want to be a doctor. Research shows community college graduates make the same (sometimes more) as university graduates starting out without having invested as much time and money as their university grad counterparts.

In addition to the business of education, corporate companies lure people in with the shiny, fancy lifestyle their product can add to a person’s life. Whether it’s a new and shiny Lexus, a big house in the nicest neighborhood, or lavish vacations. Society says if you can obtain these then you are a “somebody.” But doing all these are great but if you cannot afford them then why take out a loan to compete with the expectations? Well, the answer is insecurity. Companies capitalize big time off of people’s insecurities. Whether it’s a need to feel wanted, important or pleased, people will spend big money if they are not secure with themselves.

I guess you can tell I’m a conservative person when it comes to money. Debt is not normal in my opinion.I come from a family that doesn’t believe in debt except for a house, and the house should be paid for in 15-30 years. My grandpa worked for everything he had. He bought everything cash and paid his house off before he died. If he couldn’t pay for something in cash then he couldn’t afford it. He didn’t feel a need to keep up with the Jones’. He just liked his freedom and peace of mind.

Here are a couple of ways (I have observed) to stay out of/manage debt:

1. Dave Ramsey’s “Snowball plan”– this is where you use majority of your earnings to pay off a loan. When the loan is paid off, if you have another loan take that monthly payment and apply it (in addition) to the payment for your second loan and so on and so on for additional loans. Resulting in your money creating a momentum to paying off all of your debt.

2. Don’t feel a need to compete-Why feel a need to compete with others? If you know what your income is why compete with society’s expectation of what success looks like. You don’t know what others are making or how they are managing to acquire their possessions. I know some people who are miserable behind closed doors but from the outside they have a brand new Lexus parked in front of their 3-car garage house in a gated community. In contrast, someone who is living in a box house is happy and debt free. They are free to do what they want instead of being a slave to debt.
3. Pay for everything in cash-when you pay with cash, you’re less likely to spend as much because you can actually see the money leaving the pot. Therefore, more likely to think twice about your purchase.

4. Have only 1 credit/debit card– having cash all the time isn’t always practical but when you have to use a credit/debit card it should be for important purchase and should not be used all the time. If you only have 1 credit/debit card this will make deciding if the purchase is important easier. Having 1 credit/debit card also makes it harder to spend money especially if you have more than 1 bank account.

5. Once out of debt, stay out of debt– take care of the things you do have. Whether its an old car or an old appliance. If its still working and doing its job efficiently then maintain it don’t replace it. As Dave Ramsey says, “Drive the car until the wheels fall off.”

Link to community college graduates out earn university grads

http://money.cnn.com/2013/02/26/pf/college/community-college-earnings/