The following is a guest post by Green Panda of Green Panda Treehouse. If you like this post, consider subscribing to her RSS feed.
As the oldest kid in my family I helped my mom balance the budget with one income. It is was tough at times and I learned the concept of priorities.
I’ve pretty much have been working since I was 14. On one hand I felt like I had to be responsible and at the same time I wanted to have what ’everyone else’ had. I had paychecks where half (or more) went to help with the bills and I blew the other half. I wasn’t saving any of it.
I felt the items that I was buying was a reward for all my hard work, yet I don’t really have anything from that time period except my high school ring (which I rarely use).
I got scholarship offers, but they were out of state colleges and if I took them, I would need student loans to cover the difference. I went to a local community college and I paid a nominal amount for rent at my mom’s place.
I got a credit card in college and like many of my friends, I charged on it like crazy. At the same time I was financing college on my own through apply for grants and financial aid. I was smart with money on some things, but an idiot on others.
My worst financial mistake was getting a auto loan for my current vehicle. I had one car loan before but got out of that when the car was totaled. I got a check from the insurance company for $2000 (the difference between my loan and its worth). I should’ve gotten a used car with that. I let ego and peer pressure to cloud my judgment. The first clue that this was a bad idea was when the dealer said I needed a co-signer. I still regret this. Good news: I went from an over $5,000 balance in January 2008 to $1830 in July 2008.
Slowly I became more responsible with my money. I saved some of my paychecks and as learning to invest for retirement. I realized from reading some personal finance blogs that I could focus my efforts on something that was very useful.
Who doesn’t need to know more about personal finance? I got started on July 2007 and been blogging about personal finance since then. Have I made mistakes since then? Yes! I learned, though, that it’s a process that means making constant little adjustments.
I try to break it down in my blog so things can be explained quickly. That’s one reason why my posts are short. I figure that if you’re as busy as I am, short posts are easier to keep up with. Money shouldn’t be difficult, it does take effort.
Getting married is a huge adjustment and I’m very fortunate to be with someone who supports my goals and is responsible with his money. I’m learning that how I treat my money is a reflection of my values. Money can be a tool and protection if you have some sort of plan. It’s never too late to change.
Thanks for sharing your story, Green Panda!
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If your spouse does not agree (mostly) with your financial responsibility policy and your frugalness and goals, it is VERY hard to ever get ahead… seems either the money looses or the marriage looses… it’s hard to get someone to change their financial outlook, but it’s not impossible. Glad you found a good one to start with :)
Having a spouse that agrees with and supports your financial principles is a must. Without this, like the comment above states, either the marriage will lose or the money. I too, am blessed to have a VERY supportive and “on board” spouse when it comes to finances. I could not have this any other way.
Excellent article, thank you for sharing.
Getting an early start of wise spending habits is really good and sometimes you need to make these mistakes in order to have the future that you want. Experience is a great, except that you have to usually make mistakes to get it!
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