Paid Off Debt Leaves UNFULLING Taste

[heydude]

Ever since I completely paid off my student loans, I've had this, kinda odd feeling. Maybe it is the election as well.

Just sort of this, high expectation now that it is accomplished.

I did buy a few big ticket items, and they didn't "live" up to the hype of having "more money."

It really puts things in to perspective. Debt or no debt, you have to place your values on things wisely.

Lack of debt does not = happiness.

Just as being in debt and having those things you paid for doesn't equal happiness either.

Happiness is beyond money - debt or no debt.

[jp1]

I agree. Lack of debt just means not having to worry that something (job loss, etc) is just around the corner to screw your life up. While that's a pleasant feeling I wouldn't really call it happiness.

[Zoebird]

That is true.

But for me, money is also a fun game. When I pay off debt, I'm winning the game. While I hold debt, I'm possibly winning bit-by-bit.

For me, it's just fun.

[ApatheticNoMore]

I agree. Lack of debt just means not having to worry that something (job loss, etc) is just around the corner to screw your life up. While that's a pleasant feeling I wouldn't really call it happiness.

It's one less thing to worry about at night, and even then much probably depends on personality types. Some just go "happy go lucky" through life no matter what as in "yea, I've got debt, but it will all work out", and others will worry at the slightest thing "yea I've got no debt and a terrific emergency fund ... but what if ... global economic collapse ... what then, huh?". Some of this may be inborn or formed at very early ages though, and who knows how changable as an adult, so better off without debt if you are more on the worrier side for sure, but lack of one particular worry isn't really happiness.

[Zoebird]

I feel more secure, too, every time I pay off a debt -- and that makes me happy. Also, we have more income to save and/or use to increase the overall quality of our day-to-day lives (even with living simply), and that makes me happy, too. :)

[nordette]

heydude, the title of your post reminded me of this post (http://www.carefulcents.com/downside-to-being-debt-free/) I read today.

Once the excitement of paying off all my debt wore off, I slowly discovered there’s a big downside to living debt free. It’s not something many people talk about, or at least I never hear it mentioned much. What is this downside?

It’s the fear and temptation of getting back into debt. It seems like everywhere I go there’s a credit card or loan application being thrown at me. And people are pulling at me left and right to spend more money (http://www.carefulcents.com/resources/).

It’s very overwhelming.
Our whole society is geared towards getting into debt and staying in debt for a long, long time. It’s actually a daily struggle to stay out of debt, because the idea of being in debt (http://www.carefulcents.com/you-are-more-than-your-debt/) is so widely accepted and mainstream that I look like a crazy person for saying “no” all the time.

[Laser_Cat]

Coming from someone who still has a lot of student debt looming, I'd like to first off say congratulations on paying off that debt heydude! Although I can't speak from first hand experience I have thought lot about how having student loan debt can keep me from some fun experiences in life. For example, there's been a few times in between jobs where I've thought about just going off to live in another country or just traveling for a year but having enough savings to actually live AND continue to pay my student loans made that dream impossible for me at the time. Just think of the opportunities you have now, knowing that you aren't tied to paying for something each month. (assuming you don't have a mortgage or something else)

[heydude]

wow thanks nordette, so true! that is cool of you to share that. it is sooo true!

laser_cat - you will get there! i'm doing the mortgage now.

[Zoebird]

I have a fair bit more student loan to pay, but it's true. "you will get there." it's how it works.

Also, I was able to help advise some young friends of mine to cntinue to live with their parents (who are graciously hosting them) and paying for graduate school so that they can leave debt free or debt light (less than 10k debt between the two of them is their goal). I'm psyched for them. Between the grants and scholarships, plus working, they should be able to go to school debt free, and then graduate and save the money from their clinicals to move to the country of their choice.

[catherine]

Hmmm, I have several months before I'll be able to do a Dave Ramsey-style euphoric "I'M DEBT FREEEEEEE!!!!!" scream, but it sounds like becoming debt free is more of a whisper?

When you described your experience, heydude, my mental picture was of Morgan Freeman in Shawshank Redemption stepping out of the prison walls with trepidation.

I think you're right about it being really more about the foundational relationship with money. Just like stopping drinking doesn't guarantee serenity, but if you can adopt a whole new set of attitudes, as in AA, you'll feel that peace of mind.

I've been thinking about that as I scramble towards my debt-free state. I've thought, OK, I REALLY want to be out of debt. But it's just debt. One small part of my life. The rest of my life, every day is a blessing. Being out of debt isn't going to make it any better. It's just going to make it free of debt.

[iamdavidspersonaleconomy]

Thank you Nordette for the quote. It is very insightful. I have a often set a goal like paid off debt, home ownership, retirement, financial independence. Then I imagine that meeting the goal will equal happiness. That never works.

I agree this is about my relationship with money and stuff. Our culture is largely influenced by consumerism, which invites using debt to buy stuff. Then having to work for someone else to pay off that debt, then to buy more stuff. I think it is a way to keep people working in the "machine" if you will. How many people do harmful things, justifying that they need to "pay the mortgage?"

The change in attitude and aptitude of what I need rather than what I want, or on fact don't truly want, is what leads to debt free and leads to working less and being happier by spending my time with people I love.

[Gregg]

Congratulations heydude! I totally agree that simply being out of debt won't bring happiness. It does, however, seem that the less we have to worry about the less obsticles we will find on the way to finding happiness. If you're like me next month at bill paying time you'll realize you have one less check to write. It's not up there with the birth of a child or anything, but it ain't sad either.

[domestic goddess]

While you are certainly right about having no debt does not necessarily equal happiness, the relief of stress for me does equal a certain amount of happiness. The money that used to go toward paying off the debt now goes toward doing things for and with my dd and her children, which is something that accounts for a great deal of my happiness. I gues it is all relative, and depends a lot on where and how you find happiness.

[rodeosweetheart]

What Gregg and Domestic goddess said. When we became debt free, it was more a feeling of relief than happiness, and we had to start using that money to build up emergency savings, so we weren't really all the way there to feeling more happy. But when we could pay off my son's student loans last summer, of pay for a trip using cash for DH to go to his dad's 90th birthday across the country, that was a feeling of happiness. So it was kind of pre-happiness, getting back to zero from less than zero, to get out of debt.

[AmeliaJane]

I have paid off two separate college loans and two car loans over the years. I agree, it was not that exciting (compared to say, finishing my graduate degree). Perhaps that is because repayment was always part of my budget (so I didn't have to make the kind of lifestyle impact that some do when they are paying off big loans) and when I was done, the money moved into savings. When I was in a difficult work situation with salary reductions during the height of the recession, though, I was happy not to go through the financial terrors that others closer to the edge endured. So a different time and kind of happy?

[awakenedsoul]

Abraham Lincoln said, "You are as happy as you make up your mind to be." I am a much more positive person without debt. When I was in debt, it was like a dark cloud over my head. I also felt imbalanced, because every decision I made felt financial. Now that I'm debt free, I do small things that make me happy. I knit, garden, exercise, call people on my Jitterbug phone, rescue animals in need, etc. I take pleasure in doing things that are fun but inexpensive or free. Having savings and a consistent, doable budget makes me feel confident and organized.

Louise Hay says that debt is an addiction. Many people run out and buy a brand new truck or something with the same payment. It's an adjustment to get out of debt and to stay out of debt. New habits, new choices...

[bae]

I did buy a few big ticket items, and they didn't "live" up to the hype of having "more money."


For me, having "more money" isn't about being able to buy "big ticket items".

It's more about having that much life energy stored away - ready to deploy to take time off, to work on my own schedule, to engage in activities I find interesting, to help others, to invest in my community, and a hundred other things.

[citrine]

I cannot have debt either....makes me very uncomfortable! We are debt free except the mortgage right now and have been paying an extra $400 every month. I agree with bae...money is energy and it gives you the freedom to do whatever you want without being bound to something.
I think happiness is an internal thing all together....it is an amazing thing when you are able to look at youself in the mirror and smile back :)

[twcarync]

But now is the time to make your money work for you! It's a great feeling to open a statement from an investment and see how it's grown!

[morris_rl]

World cruisers Lyn and Larry Pardey call money "Freedom Chips". See:

http://www.landlpardey.com/earning-freedom-chips-with-music.html

And the expression has caught on in the world of simple living, frugal sailors. See:

http://www.captainmontgomery.com/2007/12/freedom-chips.html

http://mysaillady.blogspot.com/2012/07/sirocco-freedom-chips.html

http://www.maxingout.com/captainslogarchive13.htm

http://www.facebook.com/pages/Capn-Fattys-new-book-Buy-Outfit-Sail/156778491514?sk=info

The concept of simple living afloat has been around for quite awhile. Here is a 1932 story by Westyn Martyr entitled, "The 200 Pound Millionaire":

http://www.scribd.com/doc/16182433/Weston-Martyr-200-pound-Millionaire


Now that you have paid off your student loans, your opportunity for adventure is beckoning to you!!! With what you have learned about frugality, you can obtain "Freedom Chips" and go out and do amazing things...


Best,


Rodger

[rosarugosa]

Debt always made us really itchy and uncomfortable, and now that we have none, that souce of discomfort is gone. It doesn't make the world a perfect place, but it's definitely a good thing.

[ToomuchStuff]

Having no debt, has never equaled happiness. It has equaled contentment. Happiness is a personal thing. It can be helping others, to fulfilling ones dreams. Contentment or peace, is just a good starting point.

[Tammy]

The pay-off-debt mindset is very different from the save-my-money mindset. It's an adjustment to switch to part two. I remember worrying a lot about the security of my savings at first. At first, It was easier to owe money, than to trust the system with my savings.

[heydude]

wow Tammy! that is well said! wow oh wow.

what else do you know that I never thought of?

[Wildflower]

Since I've been completely debt free I sleep much better at night.... It's a load off my mind. I know I could survive on very little money now if I had to.

[Tammy]

I'm eccentric. I bet I could say lots of unusual goofy stuff. :)

[gimmethesimplelife]

Some money has recently entered my life as someone close to my family and who I had been caregiving for on and off for a few years passed on in late September. I have received some IRA money that I didn't even know I was going to get - apparently IRA monies move very quickly through the system once a death certificate is presented - anyway, with some of this money I have paid off a few credit cards. I think of the OP's post - am I happy now because I have done this? Not especially - but I am relieved. It is so nice to have Compass Bank and Bank of America out of my life, and not have to remember to pay them on time or incur late fees or babysit these accounts in any way shape or form. So paying off this debt has not made me happy per se, but it sure has cut some stress out of my life and it sure is good to have statements reading ZERO current balance. I really should frame these! Rob

[Zoebird]

it's really interesting because I would say my family must feel that way, Tammy.

They have this strange tendency to blow their savings over and over under a guise of "it's a better investment" or safer.

[jschmidt]

I agree with you. We paid of our house about 3 years ago. It hit me huge then, but then I settled into a lull. Now, here I am ... work is slow, and I'm able to indulge myself in things for the entire year that others wouldn't have been able to do with a mortgage. It's residual effects are priceless :)

[catherine]

So paying off this debt has not made me happy per se, but it sure has cut some stress out of my life and it sure is good to have statements reading ZERO current balance. I really should frame these! Rob

I have an armoire in my office with doors, and inside one of the doors I've taped all the last payments of all the debts I've paid off over the past three years. (I started out in 10/2009 with 22 separate debts and I'm now down to 3) I've taken thick sharpie markers and written the date I paid off the debt and put big happy faces on them. If I ever am tempted to return to the land of slavery, all I have to do is open up that armoire door and revisit the blood, sweat and tears that was put into paying them off.