For every penny you earn, there are 2 major ‘forces’ that are seeking to get as much as they can from it – The Taxman and the Lenders. The rest, if any, belongs to you.
Depending on the tax-bracket, we UK residents need to work for an average of 155 days just to pay-off taxes. The more you earn and spend, the more you give to the Taxman. We must work, on average, a further 70 days of the year to pay interest on credit card and loan debts – this is just to service the debts rather than paying them off.
With whatever is left, you need to now pay the principal of your debts to your creditors and use the rest for your sustainance.
Your own personal Debt Freedom Day (when you’ve satisfied the Taxman and the Lenders) depends on your particular financial circumstances. If you can only develop your financial IQ, you can begin to bring your Debt Freedom day forward yearly.
Remember Financial Freedom requires Wisdom.
Related posts:
Connect With Me