May 8, 2017
[caption id="attachment_1382" align="aligncenter"
width="300"] Debt for Happiness[/caption]
We never learn me included, I was financially obese and in
debt.
the original post
Are
you financially fat or Obese?
2009 was my financial wake-up call. I
was laid off from my job because our economy went to shit in a hand
basket. Like many Americans, there was a shift in consciousness
concerning ideology concerning the American dream and living. Once
you begin to lose "things" "Thought" of as important and find how
important they are not.
I like many other fellow citizens were
living way beyond our income level. Funny thing, I kept asking
myself before the 2008 crash, how long could real estate prices
continue to rise, and banks keep making refinance loans greater
than 100 of collateral. Still, my logic did not deter me from
spending five hundred to a thousand dollars more than I was making
at my day job.
Here are the bills I was paying frequently costing me $5k a
month.
- 1st mortgage
- Second mortgage
- Discover card (several thousand dollar balance)
- Very high balance revolving open credit line.
- Visa #1
- Master card #1
- Visa #2
- Car payment number 1
- Car payment number 2
- Cable bill
- Separate internet bill
- Daughter's Harp rental(yes full size)
- Mbna credit card
- Car insurance for three cars (two drivers in household)
- Misc bills I can't remember.
All told I was drowning in debt. Then I was laid off. All hope was
not lost as I had a small business that generated the money outside
of my day job to keep us afloat. In addition, my wife worked and
had her own bills, WTF was I/we thinking.
The layoff and the temporary reduction of income cause me to
pause and rethink my situation. Since 2008 I have managed to turn
my life and credit rating g around. I forgot to mention, during my
financial reprogramming, just when I was seeing serious financial
daylight, my wife and I separated. I was not deterred.
Mission Statement
I will not have more debt than I can pay off at any given moment of
my choosing. There is one exception I had to make, which is
housing. For several years I was an apartment dweller until I
remarried. The apartment allowed me to control my living expenses
for about 5 years. The good news is, because I worked on living for
need versus want, I was able to repair my credit, savings, and
peace of mind. When I did purchase a new home i received the best
interest rate. My interest rate made me gasp, as it was the lowest
I've ever experienced. [youtube
https://www.youtube.com/watch?v=vJfHD7DPl9U]
What I learned.
Even though everyone and common wisdom may inform us to save your
money, the financial temptation is EVERYWHERE! Don't be good
rich! rich is looking like you have everything under control
materially but owning nothing of value. Being Rich is looking like
you have everything under control materially but owning nothing of
value. Don't be surprised, doctor, lawyers people who you think
have the resources are suffering too. It's all about outside
perceptions. Just because someone earns $250,000 annually does not
provide financial security, if someone is financially overextended.
Money is the new crack!
Companies make it easy to take your money in order for us to look
wealthy but be functionality poor. Banks make us functional
addicts by issuing credit, and the lessons learned by many in 2008
are starting g to be forgotten. Not me! Live for need and make
"wants" rewards for good behavior. I know now, a second
reprogramming was required. After paying off my debts and living
below my means, what's next. The answer, more of the same. Don't
spend it just because you have it to spend.
Here is how it's done.
- Your phone works find you don't need a new one.
- Your TV still has sound and picture you don't need a 70 inch
OLED because it's new.
- Yep, your car is old but it cheaper to fix it than to buy a new
one.
- Make your much it's healthier than buying processed fast
food.
- Use your library, you would be amazed at how much it saves
you.
- Chose to purchase experiences versus things.
- Get a bank account not easily accessible and direct deposit
minimal 10% of your income.
- Learn something new to generate an income. (Try to make(profit)
$100) a month and save that money.
We are programmed in industrialized nations to be financially
obese. This is psychological warfare to keep you low. Every day you
are told you are not good enough if you don't have the latest item
being sold. It's not true.
Think of it this way.
- Do you have a safe home?
- Do you have enough food?
- Are you healthy?
- Are you loved?
- Do you have clothes to wear?
If you can answer yes to these questions, then 99.9 of your needs
are set, the rest is extra. The other demon we deal with is
boredom. I have had a tendency to spend unnecessarily when I get
bored. I live in the middle of nowhere, so I am bored often. This
is where I learned to use my mind and begin creating to stave off
boredom. So it's time to cut the financial fat and create a
financial reserve for the lean times.