Psychology Of Debt
Psychology Of Debt With Amida Wealth
Debt is owing money to something or someone. When we owe things, they have different effects on us depending on what the owing is for. Oftentimes, debt may be categorized in a negative way. However, from a technical perspective, negative debt is not always the case. We need to be aware of the psychology of debt within us, and what the purpose of the debt is for. Perhaps debt exists because we are striving for something that does not serve us; this is a more ego driven approach –such as fame, glamour, lavish lifestyle. On the other hand, we may owe money for our new business venture. In this case, the money we owe serves a grand purpose in our lives that will enhance our wealthy living.
When it comes to debt, we can shift our perspective to see debt in an abundant format. At Amida, we encourage you to learn, and understand the role that debt plays in your life. If you owe money, perhaps utilize this energy to recognize that you are in fact, creating a wealthy life of prosperity for yourself. Excel your abundance in this life with the psychology of debt!
Common Forms of Debts
Some of the most common forms of debt are: Loans, Mortgages, Credit Card, and Personal Loans. When a party or corporation borrows money to make big purchases or investments that are normally unaffordable and has to be repaid within a certain time, along with an interest, such borrowed sum is called debt. 8 in 10 Americans have some form of money that they owe. It is important to become present to the fact that our attitude and psychology on debt is carried by many generations before us. To owe money, can actually be a good thing!
Let’s look at debt with a new perspective. We borrow money to attend school, to buy a car, and to purchase a home. Ultimately, we invest in our dreams. In order to shift the psychology on debt; First, know what the debt is for. Second, understand the reason for the debt and the ultimate goals. Third, have a plan to payoff the money that is owed. Lastly, stick to the plan and revise as the markets shift and change. Good debts serve as an investment in your future (student loans or business loans). They have a proven long-term, positive impact on your life, whether that’s professionally or academically. Advantages include:
- Helps in financing the business not having enough capital
- Helps in business expansion
- Helpful in making big purchases
- Decreases the tax obligation
- Opens the way to new opportunities, ex- student loans, expanding business overseas, etc.
- Debt is a convenient and legal method of financing
Debt & Mental Health
Unfortunately, a number of studies have demonstrated a cyclical link between financial worries and mental health problems such as depression and anxiety. Research in 2013 found that people with a higher amount of debt self-reported higher levels of stress, higher blood pressure, and overall worse physical health and wellness. Additionally, doctors coined the term ‘Debt stress syndrome‘ as a condition where concerns over debt lead to mental, emotional and even physical health problems. In other words, debt is a serious concern in the United States. Negative debt exists when it is acquired with improper intentions. For example: credit card debts accrue as a result of trying to be inline with a certain image and lavish lifestyle. It is important to understand the reason and intention behind the money that is owed – What are your intentions, and is it inline with your legacy?
Celebrities Who Bounced Back After Their Debts
Debts are part of life for many Americans, including celebrities. Many times, they themselves don’t understand the psychology of debt and what debt represents in their lives. Here are some celebrities that needed to shift and learn the way they were looking at money:
- Will Smith owed $2.8 million (£2.1 million) to the IRS.
- Lady Gaga was technically bankrupt during her 2009 tour.
- Mike Tyson was $23 million (£18 million) in debt and filed for bankruptcy in 2003.
- 50 Cent filed for bankruptcy in 2015, despite once being worth an estimated $155 million (£119 million).
- Walt Disney was left bankrupt from his first film company.
- Cyndi Lauper went bankrupt after her manager sued her in 1981.
- Larry King filed for bankruptcy the same year he was offered a national nightly television slot.
- Marvin Gaye declared bankruptcy in 1976 after he owed his ex-wife $600,000 (£459,600).
- MC Hammer filed for bankruptcy protection in 1996, still owing $10 million (£7.6 million)
In other words, there is nothing to be ashamed of when it comes to the money that you owe. Even celebrities must find their way and embrace the energy of wealth when intentions become unclear. Set your vision and discover more clarity. You are abundant and the money that you owe does not mean you need to live in a lack mindset. Perhaps, the money that you owe is a result of you getting closer to your dreams!
Amida Wealth Family Conversations
At your next family or friends gathering encourage a conversation about finances. What does it mean in your family to owe money? Our attitude and psychology on owing money is carried by many generations before us. Perhaps, your family did not have the ability to take risks the same way that you can. Additionally, maybe no-one in your family took a chance to start their own business or invest in a home that they love. Dive deeper into this topic, to further unravel the psychology of debt within your family. Remember that the concept of owing money, does not represent lack! Perhaps, you can share your abundance through your intentional goal setting, your confidence, and your wealthful flow. You are a risk-taker, because you trust yourself! You are living in wealth.
When we take risks, we show the universe what we stand for and we create more opportunities for ourselves. With financial planning and thoughtful money handling a positive psychology on debt is possible. Change your perspective on what it means to owe money, and rediscover what it means to live in wealth! You are never in lack, you are always in abundance. Amida Advisors are there to support you every step of the way!