If you have been reading this blog you may have noticed that many of the articles I write speak about getting out of and avoiding debt. These are issues that I feel very strongly about, and thought that I should write a blog about why I feel that way. I grew up in an average American home. My parents had credit card debt, and spent money. However, I never really felt like they were extravagant. We learned to do without a lot in our family, but we always had what we needed.
When I moved out to go to college I was told that I was on my own. Well actually my father pulled me aside, and told me this about a year before I went to college. I planned on getting a scholarship anyway, and then planned on working to make up the difference. I think I was very fortunate to find a job working as a bank teller as I put myself through college. This was a great experience because I learned so much from seeing other people’s mistakes. It really changed my views on how money should be spent, saved and controlled.
One of the most important things that I learned is that I am the one responsible for what happens to my money. If I do not keep track of what I spend, and I overdraw my account, then I will be the one that pays for it (literally). Similarly if I take out a credit card and max it out, I will be responsible for the charges and interest that they earn. You can not escape that responsibility. Even if you file bankruptcy you will carry that mark with you for several years.
As an adult I have seen how debt has affected the lives of those around me. I know that it is a heavy burden to carry, and that it will affect that choices and freedom you have in the future. If you have no debt it is easy to walk away from a job that you do not like. If you have debt you may feel pressure to continue working. I have also seen the effects of paying off your mortgage and saving for the future. This leads to a happier worry free retirement.
It is true that my views may mean that I will never have the nicest clothes, the fanciest car or the biggest house. I look at it as a trade off. And if you make enough money you may not need to make that trade. For now I am willing to make the sacrifices, so that in the future, I will not have the worry.
Ultimately the way that you manage your money is up to you. It is important to realize that you are the one that is making the choices about your money. There have been times when I have been looked down upon because I did not have the latest toy, or the newest outfit. There have been times when I have felt that I am a spendthrift for a purchase I just made. The only thing that ultimately matters is how I feel about the decisions that I have made, and whether or not the payoff of the decisions are worth it to me.
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