The first time I got into debt, I was 18-22. On my 18th birthday, I dropped out of high school, inherited $31k, and got my first job---which was full-time and paid $10/hr. I was living with my parents, and didn't have any expenses. So I bought whatever I wanted, thinking "I have time to learn how to manage my money." I bought $1000 suits, a used luxury car, and was very generous with my money. Soon after, I got a big raise and decided to rent an apartment---one that cost nearly 50% of my income. All during this time, I paid bills late, made many changes and repairs to my fancy foreign car, and kept no financial records. I thought I was getting by fine, and always would be. Then I quit my job and decided to go to college. It goes on and on and on.
Bottom line: I started the bankruptcy process before my 22nd birthday. I had the best of everything, and now I am completely cut off from it---the high interest bank accounts, the good jobs, the apartments without roaches, ... my car is on its last leg and I can't even get an auto loan.
You can avoid this pretty easily though. Here's my advice:
1. Don't ever borrow money from anyone. Not your family, not your friends, and certainly not the banks. Short of wrongful imprisonment, if you're an American with a fresh start, there's just no need.
2. Don't spend money on women. Do spend time listening to them.
3. The things worth wanting in life don't have a price tag. Learn the difference between WANT and NEED, and only buy what you truly need. Learn how to provide value to others, and you will want little else from life.
WANT: Pizza, soda, a computer, alcohol, drugs
NEED: Food, water, a library card, family, friends
Godspeed, Orange.  |