In order to achieve Financial Freedom, I must first obtain Financial Stability, and to achieve Financial Stability, I must reach the state in which I am completely free of debt.
Debts are future commitments that we generate with a financial institution, a company or person for the acquisition of a good, provision of money, medical services or facilities to study (student loans). They are goods or money acquired by the debtor to be paid on terms agreed with the creditor (who provides the good). Generally, to these commitments or payments, a percentage is added (which we call interest) which is the creditor's benefit.
Due to consumerism, people living in the United States are highly indebted (including Latinos), at the time of writing this book, personal debts are at 13.29 trillion dollars. We are the nation with the highest level of personal debt on the entire planet.
From my point of view, the saddest thing of all is that a high percentage of these debts are unjustified debts.
Debt is the main reason why many of us do not have Financial Stability today. So to get out of this terrible position, it is the first thing we must face, it is the first step to get out and move forward financially.
An important step prior to Freedom from Debt is that the monthly payments that these generate for me remain below 20 ~ 30% of my monthly income.
Remember, dear friend, friend, that the main problem that keeps you immersed in the nightmare of the financial crisis, that does not let you grow economically, that keeps you stagnant is debt, so resolving this issue is of utmost importance in order to obtain Financial Stability.