Most people believe they need credit. They might be right, but let’s think about it before we assume it to be true.
Imagine a family has a mortgage on the house and two car payments. They refinanced student loans at a low interest rate last year, and they pay off the credit cards every month. They live on less than they make, although just barely.
Does this family need a good credit score?
What if you reject credit entirely? What are the consequences? It turns out there are a few things you can’t do without credit. Take a look at the list and see for yourself.
Note: Common myths have been corrected in the list below.
When you imagine renting, what comes to mind? Maybe an apartment complex with a club house. Or a community of single-family houses with yards. Or 12-month lease agreements with security deposits. Fair enough. But what about the other scenarios for renting which might work out better for you?
Thinking outside the box is critical to mastering strategic living. A large part of getting out of the rat race of money and materialism is finding solutions no one else is doing.
Why shouldn’t this apply to where you live?
Meet my two personalities — it’s just possible they make you think about your own. Future Me is quiet, patient, and wise. Good for him. On the other hand, we have Present Me. Let’s just say he is a bit impulsive.
They’re so different. One has no concept of the future, while the other will not be sweet-talked into what feels good at the time.
Interesting things happen depending on who is steering the ship.
Having nice things is not a problem. By all means, have some. However, wanting everything to be nice all the time will leave you broke — if not massively in debt. Instead, what if you only had a few fine tastes? Wouldn’t you be able to afford them?
In most cases, yes — assuming your short list doesn’t include a mansion and a Bugatti Veyron supercar.
The trick is being intentionally selective about your fine tastes. Too many, and your lifestyle will suffocate your income.
Money is easy enough to count. Countless tools make budgeting straight-forward, and smartphones make it easy to check your checking account balance. So what’s the problem?
