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How Making Wrong Financial Decisions When You Are Young Catches Up With You

Updated on June 19, 2013

LIVE AND LEARN

When I was young I wanted the best and biggest things without ever worrying about how I would pay for them in the future. In my age group, in which I was born May of 1956, so yes I am a baby boomer for sure. We all tried to beat out each other with material things with no worries about paying for them. It was later in life when I found out how making wrong financial decisions when you are young gets you in the end.

A lot of things were bought by my parents before I was able to go to work, but when I started to work and knew how easy it was to get a loan, I signed up for all kinds of loans and got approved. I didn't have too much trouble paying for them because I still lived at home.

SIMILAR TO WHAT I USED TO OWN

When I got married I brought those unpaid loans along with me to share the payments with my new wife. Where I went wrong financially was taking loans out to pay off other loans and getting deeper and deeper in debt. With some of the loans the interest rates were huge, like 18-22%. I really didn't look at the big picture of how much that loan would cost me in the end after principle and interest were paid. I said, "who cares I'll just get another loan and start over again."

As I got the loans to pay others loans off, I had a feeling that in the end it would bit me on the butt, and I was exactly right. I became later and later on various loans and my credit scores were going down with each late payment, which was certainly going to hurt me in the end.

The fun of getting loans to pay off loans, and having some extra cash to boot to spend as I wish to buy more material things would certainly catch up with me. And it did catch up with me.

My fun had run out and knew I needed to figure out how in the world I was going to pay for these loans with what I made each week. I had no retirement plan, such as a 401K until the early 2000's when my employer offered it to us. Well, I was about in my late 40's and half of my working days were gone and nothing saved for my retirement.

So my suggestion to all that are in huge debt is, "don't take loans out to pay off others because in end there will be no end." You will be paying for loans for the rest of your life. Now, my motto is if I don't have the cash, I don't buy anything, and I am just fine with that, and now I am close to debt free finally. It took many years, but I did finally pay off everything except one loan and just living the simple life. I have no worries of how I am going to pay those bills that came in each and every month.

DOWNSIZED TO A MUCH SMALLER BOAT TO HAVING NONE NOW

Source

DID YOU EVER MAKE THIS MISTAKE?

Have you ever robbed Peter to pay Paul?

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LIVING A FRUGAL LIFE NOW

So as I said earlier that I brought my wife into my financial problems and it took the both of us years to figure out how we were going to get out of the mess I put us in over my younger years and into our married years as well.

I was always told by my parents that I had rich mans taste and they were so right. If I saw something that I loved I would do anything to figure out how I would purchase it and never worried about interest rates or years to repay. I just wanted it and that was the end of it.

I usually got what I wanted and had no problem paying for it in the beginning, but as time went by and other bills started to come in along with the most recent bills I was at wits end of which one I should pay first. By doing this the others bills began to be late. I am sure you may know what I am talking about if you ever had these financial problems.

It is one of those deals that your financial problems are now making you miserable and stopping you from even sleeping well at night.

ON THE WAY TO LIVING DEBT FREE

It has taken many years to get those loans paid off, but I am on the way to living debt free. You have to learn to live without credit cards as hard as it may be. I have not a one credit card and haven't had any for many years.

Although there is more to get in in debt besides credit cards and that is personal loans, car loans, boat loans, furniture loans and so many other things that will get you in financial trouble if you are not careful.

All of these loans add up and it is very easy for many people to get these loans. Sure, with a great credit score some loans maybe interest free, but those that have poor credit scores will still possibly get a loan, but with a huge interest percentage.

So with that said, I have no credit cards. I have one loan left to pay off and then I will be debt free. I will have only my living expenses such as gas, electric, cable, car insurance, and of course what we all need, food.

You have to be willing to live life a little simpler and not want to go out to eat so much. We go out to eat about once every two weeks, when before it was everyday. All of those outings add up to be a huge amount of money each month. You just have to give some things up, although it is very nice to go out to eat and enjoy your spouse and family, but only once in awhile. Doing it that way you will enjoy that outing a million times more than if you eat out every single day. It gives you something to look forward in the weeks to come.



TAKE THE MONEY AND RUN IS NO MORE FUN FOR ME.

Source

PLAY YOUR CARDS RIGHT AND YOU TOO WILL BE ON THE ROAD TO BEING DEBT FREE

HOW NOT TO MAKE WRONG FINANCIAL DECISIONS WHEN YOU ARE YOUNG

IF YOU ARE YOUNG OR EVEN OLDER AND READING THIS, TAKE MY ADVISE AND DON'T DO AS I DID WHEN I WAS YOUNG:

  • Don't want everything you see even though you would love to have it.
  • Everything cost money and there is no free ride.
  • Look into the loan and it's interest rates before signing anything.
  • Ask yourself, "can I really afford this item and be able to pay on time each month."
  • Ask yourself, "do I really need this item?"
  • What can you do to pay for what you want in cash.
  • Will this item make me a happier person and can I live without it.
  • What will I pay after all is said and done? Principle and Interest.
  • Now, think of what that item will cost adding both principle and interest, and then ask yourself, "is it really worth that amount of money?"

LESS IS OFTEN MORE

I have learned to live without many things since I changed my ways. As you may know, I sold just about everything I had to fulfill my dream to live near the Ocean.

Believe me, it was well worth it in the long run. Those things I sold, cars, trucks, house and many other things gave me peace of mind with no more worries of where I was going to get the money to pay all those loans each and every month for years to come.

I am just about free of debt and my worries. THAT IS WORTH MORE THAN ANY MATERIAL THING IN THE WORLD!

BUT, that is only me. You may think totally different and disagree with my statements here in this hub. By doing what I did changed my life even though I have less material things and my play toys such as boats, fancy cars and a beautiful house.

At my age those material things mean nothing as long as I am healthy and happy and enjoying my loving and caring family. That is what matters the most in my life and it should matter to you too, because after all, we are only here on Earth just one time so way not enjoy our life and live it simple without worrying ourselves to death wondering where the money will come from to pay for those fancy play toys.

Think about it and you may just change your own life as I did. All you have to do is do without and enjoy what you do have, and one of those things are Peace of Mind.

HERE IS TWO OTHER MATERIAL THINGS I SOLD TO HAVE MY DREAMS BECOME A REALITY!
HERE IS TWO OTHER MATERIAL THINGS I SOLD TO HAVE MY DREAMS BECOME A REALITY! | Source

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    • the clean life profile imageAUTHOR

      Mark Bruno 

      5 years ago from New Jersey Shore

      teaches12345 -- hello my dear friend and thanks for reading! I think many people have done this and I am trying to get the word out not only to the young but older folks as well. You will indeed pay dearly in the end. At least I did.

      Mark

    • teaches12345 profile image

      Dianna Mendez 

      5 years ago

      I hate to admit it, but I have done this and paid big time for the mistake. Thanks for the wise advice.

    • the clean life profile imageAUTHOR

      Mark Bruno 

      5 years ago from New Jersey Shore

      Rock nj- Thanks for stopping by and commenting. Thanks for your kind words my friend from NJ. Boy if I knew what I know now things would be far better, but that is the past and now time to teach (hopefully) our young children that will have a long road ahead of them. I see these young children driving expensive cars, trucks etc at such a young age and wonder to myself, did their parents buy this or are they deep in debt this young?

    • Rock_nj profile image

      John Coviello 

      5 years ago from New Jersey

      Good Advice and Nicely Stated! I certainly would be better off today if I hadn't made stupid financial decisions when I was younger. Providing financial guidance to young people is something all parents should do, but it tends to get lost with all the other parenting priorities.

    • the clean life profile imageAUTHOR

      Mark Bruno 

      5 years ago from New Jersey Shore

      KT Banks- Thanks so much for reading and your comment. Yes please pass this along to your son so that he and his wife don't do what you and I have done, because in the end as you know we all pay dearly in the end. Man I wish I knew back then what I know now. Yeah you like those ads?

      I went as far as selling my totally redone home with a huge garage to living in a double wide modular home which is just like a rancher. The difference is I live down the street from the open Bay and minutes to the Ocean in which was my dream my whole life. You have to give to get I guess, but I am much more happier.

      All the best to you KT :)

      Mark

    • KT Banks profile image

      KT Banks 

      5 years ago from Texas

      I love this information. I need to share this with my son, who just got married. I think I've made every financial mistake in the book, but I am trying to live much more frugally now, and hope it will start to pay off eventually.

      I have to say, I am amused at the ads for loans at the bottom of this hub (That's how they get you! lol))

    • the clean life profile imageAUTHOR

      Mark Bruno 

      5 years ago from New Jersey Shore

      lovedoctor- Thank you for the comment. I hope it helps others not to mess up their life with wrong financial decisions. I hope all is well with you and have a great week ahead. :)

    • profile image

      lovedoctor926 

      5 years ago

      Excellent hub with some very wise advice. voted up+++

    • the clean life profile imageAUTHOR

      Mark Bruno 

      5 years ago from New Jersey Shore

      Bill - Thanks Bill for your comment and YES I have made a few mistakes, so I need to pass what I have learned by my mistakes to others so that they will not fall into the rut I was in.

      God Bless you my friend :)

    • billybuc profile image

      Bill Holland 

      5 years ago from Olympia, WA

      Hell yes!

      I'm right there with you, Mark, including all the mistakes of the past. Hey, I never claimed to be a fast learner. :) Great message here my friend.

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