Young folks drowning in debt November 21, 2006

USA Today is running a six-part series on young people and debt. The first article was pretty interesting, but even more interesting were Jeremy’s comments on it over at Generation X Finance:

If you look at the sense of entitlement with the ease of obtaining credit, you have just found the answer to why young adults have a debt problem. It is a dangerous combination of a mindset where someone feels they deserve to be successful with the ability to obtain a means to feel successful. Credit is the vehicle and many young people got in for the ride.

Well said. Yes, tuition is rising, housing costs are rising, lots of costs are higher proportionately to the average income than they were in generations before. But on top of that there is a huge problem of people spending more than they can afford on things they just don’t need. Advertising and the media have done such a wonderful job of brainwashing us all into believing we “need” certain things in order to live a happy life. You only have one car? No garage? No cable? No dishwasher? Oh, you poor thing! It’s all a lie, folks! Resist the urge to keep up with the Jones’. I’m sure all of us are striving for it in one way or another. You may be quick to say “No, not me” but I think if we all search our hearts we’ll find some of that somewhere in our lives. It’s human nature.

Mike and I had a great conversation about finances the other night. We were mostly reflecting on what we have learned about money and how far we have come. With Christmas coming, and a baby on the way, we could potentially be in a very stressful place right now with money… but we’re not. We have funds saved for emergencies, home repairs, car repairs, car replacement, and most importantly: for Christmas gifts! We are so at peace with where we are at, and it all started three years ago (11/7/03 to be exact) when we decided to stop borrowing and start working together on a budget and sticking to it. Yes we have made our share of mistakes over those three years but the point is we made more rights than wrongs (a 180 flip from the 4 years prior). We are learning to be content with what we have and we understand that when we have to say no to a coveted purchase it is for a greater purpose. We are getting out of debt and saving for our future. Our bills are paid and we have money left over. And with that leftover money we are telling it where to go instead of letting it slowly slip away only to look back and say, “Where in the world did all that money go?”

In life we are often dealt circumstances that we have no control over but we do have control over how we respond to them. With a bit of tenacity and determination you can overcome those obstacles! And as Dave Ramsey says, “Live like no one else, so later you can live like no one else.”