Mel Abraham explains that debt means you're spending more than you earn, and the math will eventually force a reckoning. He outlines a two-step fix: learn to eliminate debt, then use employer-matched retirement contributions. Skipping even a 3% match when your employer offers 100% is leaving free money behind.
Debt means you're living beyond your means. You're— any way you cut it, it means that if I am paying for my current lifestyle on debt, that means that I have overextended myself. And then to not be tone deaf to the fact that the cost of living has gone up and everything, I understand that. But just like our government's going to find out one of these days The math will always math out. You can't live beyond your means for the rest of your life for a long period of time without something coming due. And we need to teach them that. And we— but then they don't know how to get out of debt. So we gotta give them tools. How do you get out of debt? And then how do I get some of that money and work for me and get into the compounding? If your employer is gonna give you a match, let's say he's gonna match 100% up to your first 3% of your salary, and you're not putting 3% of your salary on, you're giving up free money.
