Anyone who knows me, knows how I feel about debt. Anyone who has known me for more than 13 years, knows that I learned this the hard way. With that said, I am on one hand, careful to not pass judgment or criticize those that are in debt. On the other hand I am very qualified to do so having experienced the woes of money misuse as well as having learned from those woes and proven committed to not repeat them. I think that is what sets me apart from many Americans. I have seen the cycle repeat itself within the same individuals my whole life. This is not to say, these individuals are not smart or foolish, but rather victims of a culture created in America where debt is not only acceptable, but encouraged all around us. You are more of an oddity if you do not have debt than if you did.
Each of us need to learn this lesson and embrace a lifestyle that is within our means, one that does not require the use of debt to maintain it. For me, and most people for that matter, I had to hit rock bottom in a bankruptcy court before I realized that something wasn't adding up right and changes needed to be made. For many, that isn't enough and they need to lose their home or family before they "wise up". One benefit I had in my favor is my admiration for the greatest generation. The generation of my Grandparents. They lived a simpler life and in doing so, they managed to stay at one place of employment, they lived in one home until it was paid off, they restrained themselves when it came to luxuries and they saved for retirement. 
All of these things have become increasingly difficult as employers are no longer creating a workplace that fosters reciprocal loyalty (lucky for me, my employer does), we move constantly in search of that bigger and better residence and savings...well, that is almost non-existent, in fact, retirement is almost non-existent. America has changed the way it views money and more so about the way it views debt. It used to be that lenders sought to lend money to those that could be trusted to pay off the debt in a timely manner. The debt was indeed paid off in a timely manner and typically early as this was priority numero uno. These days, lenders seek those that are more likely to not live within their means, hoping to ensnare those who are new to the money game or uneducated when it comes to money matters, for in them, they have a customer (indentured servant) for life. Then, in turn, the borrower tends to roll the debt into other loans and pays that debt off in twice the amount of time it should have been...all the while racking up more debt on that newly freed up line of credit. 
Again, I do not throw rocks from my once glass house, but it stands in need of discussion. Our schools do not educate us about money management or how to earn interest rather than to pay it. We are relatively uneducated regarding money matters and it shows in our current financial state of affairs as a whole country. And the spending is still out of control! It is time for each of us to educate ourselves or seek out that education regarding good debt versus bad debt. It is time for each of us to deny ourselves the occasional luxury and learn how to save. It is time for me to do so even more and that is difficult. I want to spend and have fun. I want others to see what I am capable of or what success I have experienced. It is a struggle, but I believe there is joy in discipline. I just need to find the strength to muster it. Where did all this come from? I read this article this morning. Pretty simple, but it is articles like this that we should all be learning from. Just click the money sign to read the article.
Here are a couple things to remember...
"If you want to feel rich, just count the things you have that money can't buy" Proverbs
"Money never made a man happy yet, nor will it. The more a man has, the more he wants. Instead of filling a vacuum, it creates one." Benjamin Franklin
6 comments:
I appreciated what you said. The article is very informative as well.
I think the two biggest financial mistakes I made personally were:
1) Living within my means. I always thought this was a good concept, but I found that even if you live within your means your means can change and you are in BIG trouble. I never spent more than I made, and I was very good at stretching my money, but things happen....illness, losing income, divorce, death...and then a good plan goes south very quickly.
2) I didn't realize how quickly time passes. I didn't save for retirement. There were X number of dollars and it was spent on current needs. Even if the needs were important needs...it was still living for the moment, and not planning for the future. The future is not far off and it becomes the present very quickly.
Good point, Mom. Unfortunately, employers do not take care of their employee's retirement, nor are they incentivized to do so. While that rule has changed, our actions have not and we have not taken it upon ourselves to save for retirement. I am so jealous of Scott's retirement plan.
Hi! Can I join in on the discussion? This is a subject near and dear to my heart these days. We have really changed our way of thinking and are plugging away at getting Tim's student loan paid off as quick as possible and then the rest of my car. We are avid Dave Ramsey followers these days. We have read his book and are following his plan. We have been able to pay almost 4 times the minimum payment each month now - Along with paying for Alexa's braces in cash (which I never thought would be possible as that part of life came so quickly (you are so right about that, Leslie.) You should check out his book and radio show if you haven't heard him yet. He is very common sense. He even goes a step further than the article you posted. He doesn't believe in bad debt and good debt. It's all bad because you are a slave to the lender no matter if it's a mortgage, school loan or consumer debt. There is always those things that come up, like you said, Leslie - illness, loss of job, etc. So now our plan is not only to pay off the debt but do it as fast as possible and after that save up an emergency fund of 3 to 6 months of expenses just for those issues. Seriously, if you haven't read his book, you should check it out. It can help anyone at any stage of their life. It's called the Total Money Makeover. It's so simple to understand and definitely not a get rich quick plan at all. Ok. So I'm done preaching. I told you this subject is near and dear to my heart. I wish I got some sort of kick back for this plug. :)
BTW, Marque. I think you are more than qualified to preach about staying out of debt. It's great to hear from someone who has experienced "the bottom", like you said, so we can learn from you. The best part is that you saw the error of your ways and have turned the corner. Love it. Thanks for the great reading - the article and especially your comments.
I actually have never listened to Dave Ramsey, but people have assumed I do based on my views (though business debt that creates an income is indeed good debt that is paying for itself...mortgage...not so much). They offer Dave Ramsey classes here through Zion's bank. Includes a book course and materials for nine weeks I think. I have been thinking of organizing one. Great suggestion, Casey. I will get his book.
Thanks for the comments Casey. I wish I could write a book on how my financial journey....and how NOT to take it.
I was always surprised to find out that we qualified for reduced or "free" lunches for the kids at school, because I never FELT poor. We really did stretch our money well so that our kids could keep up with families who made twice as much as we did. But that being said, there was nothing to spare. And when life happened we were on the path to dysfunction.
I am soooooo grateful that Marque was able to take the things we did right AND wrong, and make some good decisions and have a well grounded philosophy. Not only does he not overspend and save for the future, he gives to those less fortunate. (I am not sure he knew I noticed this because he doesn't advertise, but it was a quality that he had when he was a youngster and I learned from him even then.)
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