Financial Peace Makes Sense
An article by Andrew Keshner yesterday in Market Watch caught my eye.
“A new study has a whole different take on what debt relief means… Getting rid of debt doesn’t just unburden finances, it takes a weight off the mind that clears up cognitive functioning, lessens anxiety and improves impulse control.”
Background: Jane and I have been blessed to lead a Financial Peace University class a few times. It’s been amazing to watch the transformation in people’s lives when they are no longer slaves to debt.
“It doesn’t just feel good to pay off debt, it can improve how your mind works, new research suggests…”
“The findings come from researchers at the National University of Singapore’s Social Service Research Centre, who studied almost 200 low-income people who unexpectedly had portions of their long-running mortgage, utility and municipal debts paid down by a charity.”
Unfortunately, some people make faulty assumptions about the correlation, categories, concepts of: low-income, poverty level, poor people, debt. I’ve observed some low-come people get totally out of debt by developing some financial discipline, receiving some help from charities, and achieve financial freedom while still being considered: “low-income”. Some “low-income” people are actually more financially well off than “rich people” who live in “a big house in suburbia”, lease a fancy car, and are in debt up to their ears.
When Dave Ramsey talks about being stupid with money — it make even more sense now.