7 Financial Minimalist Principles To "AVOID" Debt

ladies and gentlemen damage Caballeros as a self-proclaimed Financial minimalist or depending on the topic of the video a Frugal minimalist there are only two things in this world that scare me and the first one is the Canadians ladies and gentlemen I just hear what's going on up there and it seems too good to be true I mean you never hear anything bad going on in Canada sounds awfully suspicious but the second thing that scares me as a financial minimalist and what this video is about is debt because debt is selling your future for your present

and it terrifies me how one decision can prevent someone from living their life and spend their entire life trying to figure out how to pay off their debts so as a financial minimalist I avoid debt at all costs and I follow certain principles to avoid debt and in this video I want to share those principles so here are seven Financial minimalist principles to avoid debt principle one it's much easier to do something than to undo it ladies and gentlemen imagine someone giving you a tuba toothpaste just like this one and they said squeeze out all

the toothpaste you could do that in a matter of seconds but then they said when all the toothpaste was out of the tube put the toothpaste back in the tube it's nearly impossible to do that and that's because it's much easier to do something than to undo it when it comes to debt it's so easy to max out a credit card or get a car payment or get an expensive house but to undo those actions it's a hundred times more difficult there's a quote that goes an ounce of prevention is worth a pound of cure

once you get in debt it is extremely difficult to get out of debt I mean most people will spend their entire lives trying to figure out how to pay off their debt but if they just thought through their financial decisions maybe they could have avoided the debt in the first place my first principle to avoid debt is simply just think through your decisions don't make any quick financial decisions that you're going to pay the price for years to come ladies and gentlemen it is much easier to do something than to undo it so think through

your decisions principle two keep it simple stupid if you've ever done a school presentation before you might have heard of the kiss method which means keep it simple stupid and as a financial minimalist this is how I view my finances nothing about my finances us complex I keep everything simple because it minimizes what can go wrong you know life is going to throw its punches at you maybe your car engine's just gonna die one day but you are always going to have these Financial burdens however you can minimize what can go wrong if you have

a five bedroom house two car payments and you're trying to keep up with the Kardashians a lot can go wrong and if something goes wrong you already have all these bills so it's going to be a lot harder to keep up but if you have a two bedroom house a car that's fully paid off and you're just trying to keep up with Augustin there's a lot less that can go wrong and you won't have as many bills so it's easier to recover from life's hits my second principle to avoid debt is keep things simple minimize

what can go wrong pay up front don't have a bunch of wants and don't update things when they don't need to be updated keep it simple stupid and then it will be much easier to recover from life's punches principle three your burdens must remain your burdens ladies and gentlemen I have been waiting eight years for my favorite book chantaron to turn into a series and I even got a subscription to Apple TV so I could watch the series but when I was watching this series there was one quote that just really stuck out to me

about debt and it's where the slum leader denies money from the mafia leader and he says our burdens must remain our burdens so they don't become our debt in what he meant by that is that the peace cooperation and future of the Islam could be compromised if they start selling their burdens to other people it could change who's in control you know we Face many Financial burdens in life we Face many Financial surprises there could be house issues there could be car issues there could be health issues and most of the time we say I'll

worry about this later and we sell our burdens to someone else usually in the form of a credit card but this is a dangerous thing to do because the debt changes who's in control my third principle to avoid debt is to not sell your burdens take ownership of your burdens because when you start to sell your burdens to other people it becomes debt and the debt starts to dictate your decisions and the debt changes who's in control and the burden of the debt might end up being bigger than the original burden that you didn't take

ownership of principle four no money must mean more than zero dollars money is just so fascinating because it's just so relative I mean when people say I have no money that could mean so many different things for most people having no money is when all the credit cards are maxed out for many people no money is negative ten thousand dollars no money simply means when all of your resources are depleted no money is when you stop eating out you stop getting drinks and you start making changes with your finances but most of the time when

people say they have no money it is too late and it's too late because they don't just have no money but they're in debt if you wait until you're behind to start changing your habits then it will be a never-ending game of ketchup because you're not just trying to replenish your savings but you're trying to pay off your debt at the same time so my fourth principle to avoid debt is that no money must mean more than zero dollars you have to start changing your habits before it's too late you have to change your habits

before you have no money and not wait until all your credit cards are maxed out because at that point it's too late but if you start to make changes before it's too late while you still have money then it's much easier to recover from it principle five know thyself we're all very different we're all good at different things and we're all bad at different things and ladies and gentlemen some of us have mustaches While others don't but in order to have a healthy relationship with finances you have to know who you are you have to

know your strengths you have to know your weaknesses and you have to not put Temptations in front of you that you can't handle for example everything I buy I put on a credit card because I get cash back but I always remember to pay it off before the end of the month I know I have the self-control to do that but if I knew that I didn't have the self-control to pay it off every month or handle a large balance then I would just avoid getting a credit card you shouldn't put Temptations in front of

you that you know you can't handle when it comes to money it's very important to know your weaknesses and not put Temptations in front of you that you no you can't handle you know we all have things that we don't like about ourselves and we want to change but we can't because it's just who you are sometimes your facial hair just isn't growing how you want it to grow but that is just who you are ladies and gentlemen you know there's nothing wrong with not having self-control over a credit card but there is something wrong

when you put it in front of you and you know that you can't handle the Temptation so my fifth principle to avoid debt is to know yourself know thyself know your weaknesses know your strengths and don't put Temptations in front of you that you know you can't handle don't screw yourself over principle six practice patience I think that in the long term the number one skill to live comfortably and avoid debt is patience I think that patience is the key to achieving anything in life because nothing worthwhile comes quickly and when it does there's usually

some strings attached like you can have this car now just pay me five hundred dollars a month for five years you could have this prepared sandwich for ten dollars just pay me twelve dollars later you can have it now but it's going to cost you more we're living in this world where everybody wants things extremely quickly where packages are getting delivered in 48 hours where drive-through times are under three minutes we're taking airplanes to go everywhere it's nice to have this stuff and it's nice when people value your time but these things are making us

extremely impatient and they're making us go in debt over things that we could really wait for because the irony of all of this is that we go in debt mostly over once so my sixth principle to avoid debt is to practice patients most things in life could wait and if you wait they end up being sweeter because you have a big appreciation for them and if you practice patience in life it is very easy to avoid debt principle seven stop pointing fingers because Superman ain't coming ladies and gentlemen I normally finish my videos in a

very positive light but in this video I want to finish with some tough love but remember this is coming from a place of love not from a place of hate it's a crazy time to be alive right now but as my grandpa Papa once told me it's always a crazy time to be alive when it comes to money we love to point fingers and say I ain't where I want to be because of this and once this changes things will get better and basically we're waiting for Superman to swoop up and save the day but

I got a news flash for you ladies and gentlemen Superman ain't coming the world ain't Fair the system is rigged but this is the wild crazy world that we're living in and with personal finance comes personal responsibility you are the only one that is going to solve your problems and if you spend your life thinking that Superman is gonna come swoop up and save the day you will spend your entire life waiting and that is the hard truth with money the world was crazy yesterday the world is crazy today and the World's Gonna Be Crazy

in 10 years Superman ain't coming to save the day I'm sorry to say that ladies and gentlemen but be your own Superman and save your own day