Anyone 18-30 Please Read!

thunderDAN

I'm not trying to be a dad, but there is a growing trend I have come to see with people my age (I'm 24) and it is getting in way over your head in debt. I have many friends and even people in my own family that see their credit cards as something as a source of income they do not have. Before they know it they have anywhere from $5000-$10000 (or more) in debt racked up! Our generation is the worst at this if you look at the shocking statistics dealing with personal unsecured debt. Our generation will face some very tough times and it is important that we prepare ourselves by saving the most we can each day and spending the least each day. Maybe it is those shoes you want but don't need, or maybe it's those 10 Pearl Jam posters you bought that just sit in your closet- we are living in a time of excess and we really need to prepare ourselves. If you look outside your window the nation is facing tough times due to people living outside their means; please do what you can to reverse this trend.

Again, I'm not trying to be a dad, but I wish someone would have told me this when I got my first credit card when I was 18. I lived the high life buying expensive beer, expensive clothes, going to concerts I didn't have the money for- you name it. Before I knew it I had about $6000 in credit card debt and nothing in savings coming out of college. Two years ago I started a new job out of college and it sucked that I couldn't spend the good money I was making on myself, instead I had to pay off the good time I had the years prior. Luckily I didn't screw up my credit because I always paid my bills; and I am now 100% debt free, and I can save the money I normally would pay to creditors. I didn't have to feel guilty driving to Virginia to see Pearl Jam this summer; I could do more things.

So please, it is not too late to change. We don't all need to be statistics. Not everyone has credit card debt. Believe me, this financial crisis will pale in comparison to the times we will live in if these ways of spending stay.

Here are some links to check out:

http://home.ingdirect.com/
-ING is my choice for Savings because a)it's simple, b) I can't be tempted by being able to take it out of the ATM c) there is a cool little interest calculator to see how much interest you make! (PS if you want to sign up for an account PM me and refer me and we each get some cash!)

http://www.feedthepig.org/
- I saw this commercial, checked it out, and this is the single thing that changed my ways. I went from having a ton of debt and no savings to having no debt, and some savings- still working on it!

http://www.wesabe.com/
-an online community of young adults that you can share ideas about saving with. Ways to save that extra $2-5 a day that add up to alot over time


Anyway good luck!

Rygar

I do not mean disrespect in any way, but this is not a new thing at all.
If people haven't learned by now, they aren't going to.

chromiam

Rygar wrote:

I do not mean disrespect in any way, but this is not a new thing at all.
If people haven't learned by now, they aren't going to.

very true... its due to the consumer economy of the US and if people don't learn from what they see going on, then they will learn when their actions come back to haunt them...

BTW- I'm not being high and mighty here.. I have CC debt, its a fact of life, just have to try to limit and control it.

thunderDAN

Rygar wrote:

I do not mean disrespect in any way, but this is not a new thing at all.
If people haven't learned by now, they aren't going to.

Well I wouldn't have been changed if not by chance. I can relate to people overspending or spending without a care because I used to be like that. So maybe someone will read this and change- maybe not, but it wouldn't hurt

xavier mcdaniel

thunderDAN wrote:

Well I wouldn't have been changed if not by chance. I can relate to people overspending or spending without a care because I used to be like that. So maybe someone will read this and change- maybe not, but it wouldn't hurt

good resources, luckily this doesn't apply to me. i only use my credit/debit card for situations that require it, like booking flights and hotels and purchasing concert tickets online. other than that, i rarely if at all use plastic.

Rygar

thunderDAN wrote:

Well I wouldn't have been changed if not by chance. I can relate to people overspending or spending without a care because I used to be like that. So maybe someone will read this and change- maybe not, but it wouldn't hurt

True.
I use my credit card instead of my bank card and just pay it off once a month, but mentally link my debit balance to my credit spending.

LikeAnOcean

It takes control that is learned early on from childhood.. Proud to say, I've never been in debt. Any money I owed through school or car I could pay off, but took out a load to develop good credit..

All my assets and savings right now are probably over 30k in the positive..

How did I do this?

I got a job when I was 16 and have worked my ass off ever since, NEVER buying what I couldn't afford.

Heineken Helen

Excellent thread... unfortunately I think people are just going to learn from their own mistakes. I did the same as you and went out of control between 18 and say 22... and I've just now got rid of those debts and am a few grand in the positive and it's such a great great feeling! Hopefully somebody WILL learn from this though.

riffrandall

Who do you know who has savings coming out of college? Seriously, unless you are lucky enough to have had someone else foot the bill for your education, most people finish their education with some degree of debt. So you shouldn't exactly feel like some kind of irresponsible loser because you didn't have a massive savings account at age 21.

I will tell you (as a former financial advisor) that the lesson you have learned- at a very young age & for a relatively small amount of money- is invaluable. I know people who are well into their 50s, not much savings, huge debt. You would think these people are rare, but they aren't. There's a reason retirement specialists do so well, even in the market we are seeing now.

Good to pass the lesson along, but most people don't learn this lesson except for the hard way. Congrats on having no debt at your age- good luck with trying to get others to get out of the way of the oncoming train. Most people greet it head on.