“Never spend your money before you have it.”— Thomas Jefferson
Earlier on in life, I believed everything hinged on my credit score. I didn’t want to ruin any of my chances of getting what I wanted so I strove to build a solid reputation with debt.
I grabbed a personal loan, applied for secure credit cards, and launched out into a world of IOUs.
Why do we care about credit so much?
The reasons include but aren’t limited to the following:
- We want to show people how good we are with debt.
- We want something bad and can’t wait for it
- We want more debt in the future
But in reality, we bind ourselves to lives that aren’t free of the stresses that come with striving to get that perfect credit score.
Today I want to address the reasons you shouldn’t worry about those three numbers.
Credit scores aren’t a definite measure of your financial well being. They just tell people how likely you are to pay them back.
Financing should never be your first choice. We let people and things dictate what we do with our lives. From a false sense of happiness to a short-term gratification high, we’re pulled to throw our money out the window.
As a result, we borrow. And borrow. Then borrow some more.
All in hopes of increasing a number that allows us to simultaneously increase our debt?
There has to be another option. And there is.
You should always seek to pay for things in full. And if you don’t have the money now, wait.
I used to value my self-worth with my credit score. Then I realized I was selling myself short of a life full of meaning and intentionality.
You’re constantly in a cycle of giving institutions (or even people) their money back. They shouldn’t be telling you what you can and cannot do with your money.
Grant it, people do stupid things with their finances. But I see tons of problems with borrowing money just to improve a credit score.
Let this be the goal:
Own everything in your possession.
The moment you begin to believe that financing saves you a world of headaches, the worse your headaches will be in the future.
If you want to show off a perfect credit score, you’re simply showing off how much you enjoy getting into debt.
The greatest life lesson my parents taught me was to wait for something I wanted.
For many of us, the problem isn’t money. The problem is being impatient with our money.
Popular shows, music videos, and social media are drenched in displays of fancy cars and big houses.
They want you to believe that life is all about those things. But they aren’t.
Life should be about freedom.
- Freedom to buy things you and your family need.
- Freedom to take a vacation without worrying about that next payment.
- Freedom to upgrade from your old ’96 Volkswagon to a nicer car that fits into your budget.
So if you have a horrible credit score, don’t fret. Don’t belittle yourself because you can’t get into the 800 Club.
Guess what your credit score would be if you didn’t have any debt?
You can’t go lower than zero.
The key is to work for what you want and get rid of what you don’t need. See cash as currency worthy of more than paying others back.
In the end, you’ll make room for things that matter in your life instead of settling with what doesn’t.