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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Then, now, and someday Date:  7/21/2006  8:34 AM
Author:  Windowseat Number:  232455 of 312185


An excellent post, and some very good points, as well.

Like this one:

I was surprized how much money I had been spending without realizing it. It became very clear that spending money didn't make me happy.

When people show up on the board with a pile of debt, we often suggest that they track their expenses for a month or two in order to put together a realistic spending plan. And they're often amazed to see where the money has been flowing to. Starbucks, snacks, sodas, this that and another thing, in addition to more expensive items. And the stuff is gone, vamoose, and they're left with the bills.

I also liked this point:

Fortunately, DW agrees with me on financial issues, and most other issues as well. We are both a lot happier than we ever were before we met.

Having a husband or wife with the same financial goals is one of the most important pasts of being able to save. If one spouse wants to save, and the other wants to spend, there's nothing but trouble ahead. I wish more people would really sit down and discuss finances before they got married: it would save an enormous amount of trouble.

I have to say that people living "the American dream" that advertizing shows are likely to be headed for disaster. I see that a lot when running credit checks for rent properties. And I'm talking about honest, hard working, people who haven't made consistently poor decisions. I think there are WAY too many people headed for disaster without a medical problem, job loss, divorce, or other such 'one time hardships'.

Out of curiosity, do the think the problem relates more to wanting nicer things in life, like an expensive television or big car, or simply not understanding how money works in terms of compound interest, or just not thinking matters through?

I'm glad so much has worked out so well for you. And a very good point was made about how a simple accident can stop an income flow.

I hope you'll keep posting here. It sounds as though you could offer a lot of insight to others.

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