HALF A MILLIONAIRE

These debts have always been in the back of my mind for years. However, believe it or not, tabulating them has given me a sense of liberation because it provides a total picture of my situation. The numbers (see below table) do scare me, but at the same time they motivate me to fight. I realize that it will take decades for me to win this battle. Therefore, it is very important that I focus on the good things.

The house, located in one of the best neighborhoods, has been a wonderful place for my family and me. Although it is small, it has sheltered us and our memories. Despite the current financial crisis, its value has modestly appreciated. With the above reasons, I feel that the mortgage is a good debt.

Several years ago, I bought another single-family house to rent out. I hire a managing company to lease and maintain it. Although it generates a positive cash flow when occupied, it does not give me a good feeling at all. Perhaps, being a landlord is not one of my likings. I like to invest in real estate, but I feel that I am not ready for it because I am not always in control. In terms of investment, the mortgage for the rental property is a good debt. However, I will get rid of it when the opportunity comes.

My educational investment was one of the best decisions that I have made. It gives me a professional career that I enjoy and at the same time make some money to support my family and myself. I have no doubt that the student loan debt is a good one because education has opened many doors for me. Most importantly, it has armed me with analytical and critical thinking tools or techniques that I employ daily in the decision making process.

Credit card debt is bad, but in my situation it is acceptable because the interest will stay at zero for three more years. Although I am able to pay it off, I choose not to because I want to keep the money in my saving account to earn a few more coins. If one is financially disciplined, a credit card can be a good tool because it is convenient and can provide some free cash.

Although I have shown that my debts are good ones, I believe that it is much better to be free of financial obligation. If I had $500,000 in cash, I would pay off my debt immediately and restart. However, in reality, money does not fall down from the sky. I do know that I can eliminate my home and rental-property mortgages by selling both houses and, as a result, decrease my total debt by sixty-five percent, but I will not do it. To live is to make choices, and I feel very blessed to have choices in my life and the ability to choose. I must keep on fighting.