Why Debt-Free Living Principles Are the Perfect Pandemic Preparation
The COVID-19 pandemic has raised several questions about personal finances and how to appropriately prepare for an economic downturn. Because, really, how were we supposed to prepare for the effect that the coronavirus is having on our lives? While we can’t control what goes on around us or predict the next obstacle, we can be more financially prepared for the unexpected—with debt-free living.
To help our clients live more and worry less, the Dobyns Wealth Team follows Dave Ramsey’s principles for working toward a debt-free life. While we hope that our country is not faced with another economic crisis any time soon, being debt-free may help alleviate some of the financial worry that many of us have felt during the pandemic.
How Debt-Free Living Prepares You for Unforeseen Circumstances
1. You have fewer bills to pay.
This one might seem obvious, but when financial changes happen unexpectedly, it is much easier to manage and adjust when less money is going out each month. Even if you have just one car payment or just one credit card, imagine for a moment that you no longer have to pay them. You can instead save that money and help alleviate financial stress down the line.
2. You aren’t losing money on interest.
Many people have no idea how much money they spend per year on interest charges. When we take out loans or credit, we tend to think of only the amount that we borrowed or only what we’ve spent on our credit cards; however, even low interest rates can sneak up on us. You may be spending much more than you think.
3. You don’t have unpaid debt looming over you.
There is nothing like the feeling of financial freedom—knowing that you do not have unpaid accounts out there collecting interest. If a crisis happened in the future, you wouldn’t have the added worry of extra bills, growing balances, or the constant feeling of needing to juggle it all.
4. You have more money to save in an emergency fund.
Your monthly debt expenses can easily hold you back from bolstering your savings, providing yourself with a solid safety net in the event that you need it. Dave Ramsey recommends saving three to six months’ worth of living expenses in your emergency fund.
5. You’re on the path to live your best financial future, no matter what.
Of course, there may never be another pandemic in our lifetime. We hope that you prepare for the worst and then the absolute best-case scenario happens. No matter what your future holds, following debt-free principles prepares you for whatever life may bring.
Our Relationship with Dave Ramsey
Thanks to our track record of success and quality customer service, the Dobyns Wealth Team has been a participant of Dave Ramsey’s SmartVestor program for 17 years. Like Dave Ramsey, we believe in living more and worrying less. We’re focused on helping our clients live debt-free lives and financially-independent futures. Our association with Dave Ramsey is not something we take lightly. It holds us to a higher standard. We’re always working to better serve our clients with the heart of a teacher, delivering exceptional service, and being the best at what we do.
Contact us to schedule an appointment with an advisor. Our team can help you live a debt-free life, preparing you for whatever comes your way.
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