It’s time I consolidate my debt
This was a strange one for me to write because I have always been good with my finances and are very thrifty at the best of times. But the last few years have been a bit of a train wreck and now I have two mortgages and numerous incoming bills that I have just been servicing without question.
I do realize that eliminating my debt is a prerequisite of leaving the wheel, and actually is in harmony with my minimalism ideals.
I’ll need to itemise my outgoing finances and look at ways that I can reduce these expenses. Generally, any debt that isn’t helping to generate income is bad debt so if its not adding value then it has to go and I might need to be creative how I go about that.
Work is actually an expense in my eyes because of the commute and need for work appropriate clothing that isn’t worn any other time. But as it also earns you an income it’ll be one of the last things to go.
If you actually add these work related costs plus income taxes and then subtract from your income, you’ll actually get a better idea of how much passive income you’d need to live beyond the wheel. That’s of course if you want to lead the same life you have right now. Toss in a little minimalism and BAM! you have reduced your cost of living by even more.
I have plenty more to say in this space but will leave it for later blog posts. Right now its time I consolidate my debts.