Tuesday, May 29, 2007
financial troubles.. I've had a few. But I've been able to recover so far.
there are the obvious and boring lessons, like: make a budget and live by it or don't spend money you don't have. We're journeying beyond that.
I'm talking about consequences for fucking up.
The lesson that is particularly on my mind:
Once you have at least 2 overdue debts at the same time and no way to pay them simultaneously life begins to grow bleak and hopeless. The companies are quick to begin adding surcharges and late fees. It's easy to forget how broke you are and try to pay a bill thinking you have enough money. But you don't and the bank then charges overdraft fees.
You're then forced to choose between the latest or the most important bill.
The problems generate from all over and when you think of your problems it feels like a noose tightening around your neck. Anxiety rules the day but ofcourse theres no treatment like psychotherapy because that would cost money you already don't have.
Debt maintenance is important. Multiple debts make it hard to pay the debts off early and avoid heavy finance charges, multiple mishandled debts make it impossible.
The other major thing that sits in my mind is that more money never fixes budgeting issues.
My last roommate in the army and I were payed the same ammount of money. Jack lived within his budget and had some nice things but generally it was a spartan lifestyle and claimed to have $10,000 in the bank.
I spent my money randomly on all sorts of unnecessary things like meals out, books, coffee, alcohol, it was extravagant but affordable until I got my $26,000 car. That's when it all fell apart. There are many details in the story but basically the added expenses of my car destroyed the robustness of my finances.
If money were gas than Jack ran his finances like a well tuned internal combustion engine. The money flowing regularly and each drop made to count.
My finances were more like a bonfire, I just threw money at it with little thought. When I ran out of money I waited for more then started the process over. No matter how much money I could have made it never would have been enough.
I'm still recovering but I'm glad I've learned the lesson now. The majority of americans are now in debt. I'm not sure how people with children recover.
Money problems may end up being a malignant cancer to our society and sink us into a feudal state of existence. All is not lost for us yet. But the US's nine trillion dollar debt doesn't leave me optimistic.
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