Looking back over the past couple of years, I have made a couple (plenty) of dumb mistakes. However, I am proud to admit that I am much smarter today than I was back then. I was straight out of high school when I started my first real job working in Real Estate. I just got my first car, had no credit card or any other type of debt. So once I started making “real world” money, I had no idea what to do with it other than to spend, spend, and spend!
I spent like crazy. Buying video games, DVDs and generally throwing money away on a consistent basis. I had no concern for the value of a dollar. Boy, did that come back to haunt me.
One thing I learned the hard way was that with a real job come real responsibilities and real expenses. Soon came the credit card and that was followed by the debt. Sadly, I didn’t realize the mess I was in until it was too late. I had maxed out my credit card only after a few months. I also had a small student loan to pay back and no savings fund or investment plans. I soon found myself living paycheck-to-paycheck (sometimes barely at that). I became very stressed at work and depressed at home. I didn’t know what to do, It felt like I dug myself in a hole and I couldn’t get out. I was only 20 years old! After a while, I took a deep breath and looked at my life and realized something that changed my life.
You Are Your Own Worst Enemy
It was around this time when I realized that I must make a change. I started reading personal finance blogs and tracking my spending. The problem was I was still spending without caring about the true value of a dollar. I spent carelessly on useless items. I was working hard for this money and then I was just throwing it away.
I had no one to blame but myself.
I was a victim of my own ignorance. I thought because my friends worried about their hourly wage and because I had a salary, that I was able to take them out every weekend and get the tab. I don’t even want to think about all the Friday and Saturday nights where I went out with 3-5 of my friends to a bar or restaurant and picked up the bill. Not to mention the expenses that came with my job. State certified classes, licensing and even happy hour don’t come cheap!
A Slow Realization
Reading up on personal finance blogs, a lot of the “twenty-something” blogs out there were for people already out of college and with an idea of where they are and want to go. Despite the fact that the information out there was useful, there really wasn’t anything for me, a younger “twenty-something” who is just starting out. So I found a few ways that have helped me get back on track financially. Here are some examples of what I did.
The Revelation
Like I said, I have made plenty of dumb mistakes. But at the start of 2008, I swore to myself that I would gain knowledge on the subject and work hard to get myself out of the mess I was in. It’s been a long, bumpy road but I am very content on where I am. I have more income coming in and my expenses are paid . I have a small balance on my credit card left (thanks to school and text books), but that will be paid off before the end of the year. Next year, I plan on getting rid of that small student loan and work on my investment and retirement plan. I have a plan now that I’m sticking too and it is starting to pay off.
Had I not come to this realization, I would probably still be stuck in a pile of debt and unhappy with my job. The only reason I was in debt was because I didn’t know any better. Again, I had no one to blame but myself. But with a little hard work, some persistence and knowledge, I am almost debt free.
If I can do it, so can you.
Until then, stay bullish TMM readers!
P.S. I would like to give a shout out to Tom Flesher over at TomFlesher.com. If you’re a fan of hearing someone elses opinion on baseball, the economy or Canadian politics, check out his blog.
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Louis, you’re post couldn’t have hit closer to home! I, too, struggled with credit card debt as a college student and it’s still a daily struggle to keep my spending habits in check. I think a lot of us twenty-somethings feel intense pressure to “have it all”, and it’s hard to come to grips with the fact that most of us just aren’t on solid enough financial ground to be at that point yet. For me, one trick I’ve found is that every time I want to buy something (clothes are my weakness) and I resist temptation, I put the dollar amount of the item into my savings. Not quite as satisfying as a new pair of shoes, but a lot healthier.
This was a great post! I wanted to offer your readers a link to another blogger who is doing great work. He writes about our ‘childhood money messages’ and how the best approach to stability in today’s market is to resist letting these emotions control our buying/selling habits. It is really fascinating work, and something you should all check out. His name is Spencer Sherman, and you can view his blog at http://www.curemoneymadness.com/blog.