The Scene staff
I love money.
Obviously, I’m not alone. It’s not like most people are going to turn it down when it’s offered.
While having money is awesome, spending it is even better — and that’s where the problem lies. The thing that many of us want the most is too easily lost.
But all too often, that money goes toward frivolous things that we just don’t need.
I was just as bad as some of the worst offenders. Every nickel burned a hole in my pocket and I couldn’t wait to spend it. Every dollar I got from mowing my granddad’s yard or helping my dad on the farm was spent the next day at the Little League or town pool concession stand, or on junk food in the school cafeteria.
Unfortunately, the problem didn’t cease when I got older. Even though I got a pile of money at my graduation open house, it was gone before I started college at Purdue. I saved almost no money from my high school jobs.
Compounding the problem, I received my first credit card when I signed up for a bank account at Purdue’s credit union — with a $1,000 limit. When money began to get tight between dating, drinking and other stuff, I started swiping that card.
When I dropped out of Purdue, my money problems worsened. I worked full time, paid reasonable rent and didn’t have much in the way of bills (this was before everyone had to have a cellphone).
Still, I wasted not only the money I had, but the money any creditor would let me have my hands on. In short, I was very irresponsible with it.
I ran up credit card debt like it was my business, took payday loans and lived worse than paycheck to paycheck — it was always owed to someone else before I even got it.
When I couldn’t afford the bills, I just didn’t pay them — making my problems even worse. My credit score tanked, collections agencies called all the time, and I had to borrow a lot of money from my parents just to make ends meet.
I was stressed out and worried — sometimes to the point of making myself sick — every hour of every day. I didn’t want to be a broke derelict who owed everyone money. I didn’t want to have to explain the stack of unopened bills anymore. I didn’t want to worry about who was behind every incoming phone call.
When I was 26, I decided I’d had enough. I started selling off my stuff. I started eating the cheapest food I could tolerate. I stopped eating out, stopped going out to bars every other night. I found the cheapest insurance, found a roommate, canceled the cable and Internet and cut up every card in my wallet.
Instead of spending money on those things, every dime I had went to paying off my debt. For three long years, I watched every penny I had. If I saw an opportunity for a few extra bucks, I took it — and paid it to my creditors.
Did it suck? Yes. Yes, it sucked really badly. But I recognized that if I was ever going to be happy, I had to eliminate that debt hanging over my head.
Could I have declared bankruptcy? Yes, I was probably a prime candidate. But I didn’t want to just renege on a debt. After all, I’d spent the money; I had an obligation to be fair and repay it.
One of the best days of my life was the one when I wrote the last check to pay off an old credit card. Even better than that was the day I got my credit report and it showed a zero percent balance.
Those readers who are facing or have faced bad debt before know what I mean — it’s a very, very good feeling.
That’s why it makes me cringe when I hear people talk about not having money, or spending money on stupid stuff, or saying “I’ll just use my credit card.”
Those are not things that should be taken lightly. Too many people who say they don’t have money are eating out all the time. They’re buying video games, they’re buying drinks at the bar, they’re paying for premium cable.
In those cases, it’s not simply that they don’t have money; it’s that they’re spending their money on the wrong things.
I learned the hard way that on a tight budget, spending money on anything that isn’t housing, transportation, insurance, education, food and (a reasonable amount of) clothing, is wasting it. Period.
Instead of going out to eat, buy your food at Aldi and cook at home. Plan and cook meals that you can store or freeze, to take to work or school.
Cut the cable and Internet. Contrary to popular belief, neither is necessary. An antenna will get at least some programming, and there’s free Wi-Fi all over the city.
Instead of getting a tattoo, save that money or pay off a bill. Rather than buying another outfit or getting your hair done, wear the old pair and style your hair yourself. Trust me, you’ll look a lot dumber standing in small claims court than wearing last year’s style.
Today, I have a good credit score and very little debt. Now, when I want something, I budget and save for it. And guess what? I’m much happier now than I was when I was living it up and then worrying about how to make rent the next month.