Now I’ll admit, my husband and I have some debt, but I’d like to believe that we’ve taken on our debt cautiously and with good purpose.
Yes, I have a student loan, but I borrowed as little as I possibly could, and consider my modest loan amount to be an investment in my future.
Yes, we have auto loans, but the total balance of both our loans is less than the price of one brand new Toyota or Honda sedan.
We do have some credit card debt, but it is small, and can be paid off in 1-2 years.
I suppose I’d like to think that we’ve taken on “necessary debt.” In today’s society, one needs a car. To make more money, one typically needs a degree. And sometimes life comes at you faster than you thought, and you need a little help. But I feel that my husband and I have taken on these “necessary debts” as frugally as we possibly could.
We try to apply this to all other aspects of our life, as well. Clothes from the GAP? No way! Target and CostCo, baby! I buy all my books and movies used and for ridiculously cheap prices on half.com. We keep rent as low as it is possible to keep, and don’t spend more on entertainment than our budget will allow.
Pretty much our only expense is a trip to Ireland every 18-24 months, to visit my husband’s family, and we always save up for it and pay cash.
There just isn’t enough to be said for the benefit, nay, necessity, of living below your means. But I’ve gotta agree that it’s the “Lexus factor” and not the “latte factor” that’s dragging the middle class down.
