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it is true that some debt is unavoidable. We all have expenses that automatically come out of simply living. But, there is some debt that is created out of ignorance and a lack of discipline. This is the debt that we have to guard ourselves against. Money answers all things, but mismanaged money has no voice. It says nothing!

Do you remember that first credit card offer you got in the mail? I do. I was in graduate school working two minimum wage jobs when I got my first offer, pre-approved! I went ballistic and in no time had established myself as an official charge-o-holic. I used my earnings to pay the bill. Then I'd charge my necessities on the card and use my earnings to once again pay the bills. The cycle was established and solidified with the acquisition of more credit cards. The more cards I got, the more I charged. The more I charged, the more debt I created. With no change in wage, I began making only minimum payments. I didn't realize making only the minimum payment would put and keep me in a financial stranglehold. I wasn't even thinking about the interest rates.

Because we are not taught the truth about credit, many of us make and have made the same mistake. We view the credit as a medium of exchange; we can us it to get what we need or want. That in and of itself is true, but we must also acknowledge an often-overlooked truth: that medium is someone else's money. That person or corporation has extended it to you with the expectation of a financial return. They don't care how long it takes them to collect as long as they collect, because the bottom line is the longer it takes you to pay, the more profit they make. As long as you remain in debt, your money will never be able to work for you because you'll always be giving it to them!

Discipline is mandatory. It is the groundwork that leads to strategic and skilled investing. Once you have positioned yourself where debt is under control, you are now ready to set a portion of your money aside in a vehicle that will generate interest on your behalf. Not sure where to invest? Seek the advice of a financial planner who will assist you in finding the right investment/savings vehicle for you. Get out of debt, get disciplined, and make your money your business!

Learn more about this author, Nancy Gilliam.
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