Thursday, August 4, 2011

"Living Debt Free" from Luke V Erickson

I listened to this talk (podcast?) today, and I loved it.  It didn't bring up any new concepts for me, but it is great to be reminded every now and then just why we do the things we do, and why we try to stay out of debt as much as possible.

Luke likens debt to the lure used to catch octopus called a Maka Feke.  Basically the octopus will grip on to the Maka Feke but there is nothing to stop it from doing that, it is free to let go if it wants to, however it just grips on tight because it is lured by it.  Unfortunately then the octopus is pulled into the boat and is no longer free.

He mentions how to prioritise paying off debt.  That husbands and wives should sit down together each month and discuss their finances to see if they're on track so that nothing is hidden, or one spouse is trying to make everything smooth sailing if there is an issue. 

He also talks about appropriate debt (is a car or a house appropriate debt?  How about a student loan?).

Is debt an addiction?  Do we use it to make ourselves feel good (ie going on a shopping spree to feel happy?).

Yes, I'm thinking about finances now as we prepare to purchase the home we have been renting for the last nearly 12 years.  It is a huge step for us, but we are very excited! 

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