Definition of Debt

Definition of Debt

I am a regular listener of Dave Ramsey's podcast. It has helped keep us super motivated while we continue to pay off our debts (which reminds me, I should probably do a budget update soon!), and I've learned a ton about personal finance by listening to him! I really appreciate that he is consistent and will hit you with the hard truths when you really need to hear them. I especially love the debt free screams.




We were on a car trip to my inlaw's house a few weeks ago and during one of the debt free screams, the husband of the couple said something that literally struck me to my core. It was so true, and so hard to admit that it aligned with me 100%. Here is what he said:

Debt is a measure of my lack of planning and my lack of contentment with God's provisions for me.

The widely accepted definition of debt is just something that you owe to someone, or that someone owes to you, and it is typically money. It is certainly true but the part people forget when they think about what debt actually is are the emotions and risks involved in it. They forget the selfish aspect of it, because the reason they utilized debt is likely because they could not afford what they wanted, but they decided that they wanted it anyways.

They hadn't planned on purchasing it, so they hadn't saved up for it. They weren't happy with something in their life, so they risk their financial stability to purchase something they can't afford to try to make themselves happy again.

The thing is - happiness doesn't come from stuff or things or debt. No matter how many times we are told over and over by the world around us that as long as we have the next thing, we will be happier and happier, it just is not true. In fact - the more "stuff" you have, the bigger the pile of things you have to cover the real unhappiness you may be feeling. You can only hide behind your "stuff" for so long before it just falls apart.

This just really rocked my whole world when he said it. I used to be the picture of the definition, but thankfully I've been able to change and find contentment in less (and for right now, much much less) and happiness in the trade off of making sacrifices to reach our bigger ultimate goals.

One key to avoiding going in to debt is learning how to plan when you want to make any kind of purchase. And you cannot make any kinds of plans if you do not know how to budget. Budgeting can be overwhelming and scary at first! But with practice, and learning how to set up a budget successfully from the get go, can make the process so much easier.

If you're tired of your money feeling out of control (or worse, in control of you) then a budget is the answer to that constant state of fear and lack of control. Join my free webinar this Friday and learn the Basics of Budgeting. It's going to have everything you need to know about why you should budget and how to set up a household budget that will help you plan your purchases ahead of time!

Sign up for the FREE WEBINAR below! If you can't make the live viewing, you'll still get a replay link just for RSVPing!