In today's society, it's easy to fall into the trap of debt. From credit cards to student loans, many people carry a significant amount of debt, hindering their ability to build wealth and achieve financial independence. In this blog chapter, we'll explore the dangers of debt, why it's become normalized, and how to avoid it and build wealth instead.

The Dangers of Debt: 

Debt can be a vicious cycle, trapping you into a lifestyle that limits your ability to make choices congruent with your values and long-term goals. It can also have significant emotional and psychological effects, including shame, guilt, loneliness, and helplessness. When you carry a large amount of debt, you become enslaved to whatever source of income you have, and a significant portion of your income is devoured by interest payments. Debt also limits your options and focuses your attention on the past mistakes, present pain, and looming disaster ahead, making it hard to move forward and achieve financial independence.

Why Debt is Normalized: 

Debt has been promoted as a normal part of life, making it easy for marketers to sell their products and services for more money than they would without the lure of easy financing. The average cost of a new car would be significantly lower without financing, and college education would be more affordable without student loans. Unfortunately, this normalization of debt has led many people to accept it as their ticket to the good life, not realizing the long-term consequences of carrying high levels of debt.

How to Avoid Debt and Build Wealth: 

To avoid debt and build wealth, you need to think differently. First, recognize that debt should not be considered normal. It's the vicious, pernicious destroyer of wealth-building potential that it truly is. Second, avoid taking on unnecessary debt. Third, live below your means and prioritize saving and investing for your future. It's crucial to have an emergency fund, save for retirement, and invest your money wisely.

If you already have debt, focus on paying it off as soon as possible. You can start by paying off the high-interest debt first and consolidating your debt into a low-interest loan. It's also essential to avoid taking on more debt while paying off your existing debt. 

Conclusion: 

Debt is a dangerous obstacle to building wealth, but it's not insurmountable. By recognizing the dangers of debt, avoiding unnecessary debt, and prioritizing saving and investing, you can build wealth and achieve financial independence. Remember, it's never too late to start taking control of your finances and your future.

Written by Bhadresh Das