“Money, just to pile it up, is mental illness” – Dave Ramsey
Is it possible for *EVERYONE* to be debt free, live a good life, and prosper? It’s a trick question, because the answer is “Yes” but with one caveat – what you consider to be a “good life” is vastly different from the next person’s definition of that term.
Every dollar in your pocket comes out of not just one other person’s pocket, but several other people’s pockets. Why? Because money is created with debt (interest) built right in.
Your efforts to get out of debt will most likely work to keep someone else IN debt. Sounds crazy, but that’s how the math works in a world that does not have a sovereign currency. Here in the USA, the Federal Reserve (which is NOT part of the federal government) creates money and loans it to large banks, who then loans it to smaller banks, who then loans it to the customers. Every step has interest added on, but the money loaned out only represents the *principle* portion of the loan. Where does the *interest* portion come from? It does NOT exist, yet everyone works extra hard to earn extra money, to pay back that extra amount.
Let’s break this down to a simpler example: the board game “Monopoly”. Let’s pretend that you have 4 players and each player owns 1/4th of the real estate while also possessing 1/4th of the cash. Everyone takes their turn and moves around the board in a very systematic way. The game is very boring because nothing changes. That’s how socialism operates.
Now let’s make one change – we increase the rent on a building that we own. The next person who lands on that space has to pay you more money than if you had landed on a property they owned. You’ve tipped the scale slightly in your favor, at least for the moment. They pay you but retaliate by raising the rent on their property, hoping that you land on it, so you have to pay them back. That’s how capitalism operates.
Ironically, the game Monopoly has morphed from it’s meager beginnings as an educational tool to illustrate the negative aspects of concentrating land in private monopolies, to it’s current version that teaches the domination of a market by a single entity.
So which way do you want your financial life to go? Are you going to use money for good or for evil?