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Personal Finances / Credit Cards and Consumer Debt


Subject:  Re: Debtor vs Creditor Date:  8/29/2014  9:37 AM
Author:  2gifts Number:  308549 of 313032

Somehow I don't think many people think much about choosing debt as a lifestyle choice.

If people realized how profoundly choosing debt was likely to affect their lives, you'd think more people would choose to avoid it.

I think a lot of this has to do people's desire for instant gratification, and not looking at, or caring about, the consequences of that instant gratification.

And even for those who avoid debt, relatively few choose a life of saving and investing --- which also is likely to have a huge impact on people's lives.

I know lots of people who save, but they don't necessarily invest, and I think it is fear of losing money in the stock market and lack of knowledge/education about investing in general. I know that my parents, who were Depression-era babies, were clearly frugal and always saved money, but where my dad wanted to do things like buy rental real estate, my mother was dead set against it. And the stock market was a non-starter for her. I wonder how many people, even today, are like them in that they are afraid of the market and the risks because they remember the crashes and don't see the possibilities around the recovery and the growth that the market offers.

I watch now as my children are just starting out in life. DD works at a small start-up that's been around for about 15 years, and her boss thinks she's silly because she does not have a smartphone. DD says it is not in the budget, and the boss poo-poos the idea of even having a budget. And when DD says that she can't do some particular thing because it is not in her budget, he again thinks it is silly to have a budget. But he has money coming out of his ears, and so having limited funds is not an issue he faces.

We also happen to live up the street from her boss, and so DD sees what a budget can do, and has learned about saving and investing, and so is doing that from a young age. I have confidence that she will have plenty of money to spend later, and will have good spending/saving/investing habits through her live.

I think this is a great topic for discussion.
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