The Choices We Make

Not too long ago I wrote an article titled “Ease of Credit, Pain of Cash” where I discussed my transforming relationship with credit cards.  After reaching a state of financial meltdown I began to understand that my method of “managing” money was not working.  Saving myself from total disaster required serious change.

I struggled to reign in my spending almost as if I were addicted to being a consumer.  I was spending like tomorrow would never come.  My paycheck would arrive but I already had it spent.  I did not question the way I was living as I considered it to be normal.  People bought what they wanted & I was no exception.

Eventually things began to catch up with me.  The rent check that was a few days late turned into my becoming a regular patron of the cash advance store so I would have a place to live.  I was behind on my car payments so often that I was receiving phone calls at work.  I had credit cards that were in default & others which I struggled to pay as a result of all of the late fees.

Ironically, all of these problems came at a time when I was making more money than I ever had before in my life.  I was trying to create an image of success.  I had a nice car & nice clothes.  I bought a wide variety of Stuff to decorate my apartment, including a $600 piece of artwork which I then had framed for an additional $300.

I had caviar taste on a tuna budget & the money was running out.

One day while I was walking across the parking lot on my way to work I received a phone call from the company that manages my auto loan.  They informed me that if I didn’t take care of my past due account that they would repossess my car.  After some fast talking & promises I didn’t know whether I’d be able to keep we reached an agreement.  I would bring my account up to date & keep it current.  If I was unable to fulfill these obligations I would lose my car.  This was my wake up call, literally.

I did manage to get my account current & I began making my payments on time.  Things would not be easy for me while I struggled to change my consumer habits.  I cut most of my spending opting instead to pay my creditors and other obligations (as if this had seemed optional before).  Soon things were beginning to look up.  I wasn’t frequenting the cash advance stores as often, though there were still hard times occasionally.  I began to work towards paying down my credit card debt, even paying off accounts that had gone into collections.

Through all of this I’ve come away with a lesson I wish I had been able to learn without the firsthand experience; spend less than you earn.  It seems so simple yet many people struggle to put this knowledge into action.  No matter your income level, this advice applies to everyone.  The more money you make the more you will spend, but even if you are making $100,000 a year you will be just as broke as the person living on minimum wage if you can’t follow this money lesson.