My mom taught me well. Besides student loans, I’ve lived relatively debt free. I also saved of my money in retirement accounts. It allowed me to help others, give freely, and allowed me to earn money with my head and not my hands. My financial health is quite different today. I am stressed out by debt, lack the financial resources to jump on any opportunities that present themselves, unable to save for retirement, and incapable of helping others and giving to charity. It’s time to get back to basics.
Each of us has a reason why we are not financially healthy. We can change and be financially independent by understanding why we are in the position we currently in. I lost my job twice in 2007. I succumbed to the allure of using the not so magic piece of plastic called the credit card. I wasn’t able to bounce back from the second layoff. Finding a well paying job proved more difficult than I expected. I need to put myself in a position where I am bleeding less debt.
The type of jobs I obtained did not provide the income security that is necassary. I lacked control of my income. I didn’t create a moat of protection to insulate me from losing my source of income. Finding a well paying job proved difficult because I wasn’t passionate about the work or I lacked the skills needed. I decided to go back to school to pursue my passions, broaden my opportunities, and unshackle myself from the images other people have projected on me. I relied on credit cards to afford the lifestyle I lived prior to my job loss. Although it was a modest lifestyle compared to my peers, I lived beyond my means. I must live a more frugal lifestyle.
I need to eliminate the bad debt burden before I start investing for my retirement or income. My goal is pay off two of my four credit cards with balances by my birthday (29 April 2008).
