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Getting out of debt

If you’re like the average American, you’re most likely in debt.

In fact, if you own a home and recently went to college, you could have up to $200k in debt right now. Here’s a breakdown of what that can look like:

  • Credit card debt: $15,422
  • Mortgage debt: $149,782
  • Student loan debt: $34,703

And those numbers are just the averages. Many people have even more.

Debt’s a problem because it’s a downward spiral -- get deep enough and it’s not only hard to get out of debt but it gets easier and easier to get further into debt.

And when you’re in debt, things that make it easier to spend and spend -- like credit cards -- are like crack in the hands of a hardened addict.

So, how do you start to get out of debt? Well, that’s what our mission is all about today, and it begins with a short lesson in philosophy…

The philosophy of money

Quite simply, money is a means to an end. It’s a way to get what we want (food, clothes, shelter, the occasional iPad, etc.).

Spending it is a decision to enjoy the present at the expense of the future (<-- go ahead, read that again). Spend money now and you won’t have it later.

Getting out of debt is all about living within your means. And that’s true for a young couple just starting out and also true for multimillionaires.

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