If you’re a regular reader of this blog, you know that I’ve recently dug myself out of debt once again! It sure was exciting to pay off $21k in just 6 months, but the real challenge is actually staring me in the face right now. Because of my recent temptations, I now understand why people tend to go back into debt after they’ve just dug themselves out.
I’ve driven quite a few piece of crap cars in my life. Sometimes I drove these crappy cars because I simply had no money. Other times I drove rusty junk because of chivalry (while my spouse drove the nice vehicle). And, just recently I drove a tiny, old, economy car to save money on gas and dig my way out of debt. To sum it up though, I’m getting pretty sick of driving junk that has an excitement level of -2 on a scale from 1 to 10…
Since I have recently dumped my debt, I feel like I deserve a reward – this reward quickly revealed itself in the form of a 1985 Chevy Corvette. To be honest, this year’s model isn’t my favorite, but it was absolutely mint and I probably could have bought it for an even $5,000. To add to the temptation, my Honda Civic has recently been acting up and has decided not to start on random occasions. I could already feel the wind blowing though my hair in my newly purchased Corvette, but while I felt like I deserved to go out and make this minor purchase (compared to the cost of many other vehicles) there was just one problem. I didn’t have the money…
With the expense of my college courses and my recent quarterly tax bill, my bank account isn’t nearly as healthy as I would like it to be. So, in order to buy this Corvette, I would either have to sell my car first to gather up the cash or I would have to sign up for a loan at the bank.
Back Into Debt? No Thank You
The temptation of this Corvette almost had me making stupid decisions, but I now realize why so many people head back into debt soon after they got out. They feel great about conquering their debt, but they are sick and tired of living like a broke hobo and just want to spend some money like they used to do! A small loan wouldn’t be a huge deal (so they think). After all, now that they don’t have any payments, they could pay off their new car in a matter of months and be right back out of debt again. This might be true… but what if their situation changes? What if their roof starts leaking? What if they get fired from their job that they thought was so secure? All of the sudden, the seemingly inconsequential decision to take on a little debt becomes the most devastating move of their life.
I decided that I don’t need a Corvette. Not yet anyway. I need to get my house painted and finish furnishing the bedroom and living room. Plus, I need to build up my emergency fund. Only after I accomplish these things can I make such a wild purchase like a 28 year old Vette.
Have you even been tempted like this? What was it for you? Did you buy it?
As usual, I read some great articles this week. Here’s a list of those that I enjoyed the most.
Where to Invest in a Rising Interest Rate Environment at Financial Samurai
Why Pinching Pennies Won’t Make You Rich at Cash Money Life
5 Basic Rules for Growing Your Wealth at Moneyning
6 Tips to Increase Your Productivity at Digital Personal Finance
Do You DIY to Save at Debt Roundup
Protecting Your Home and Financial Assets from Burglary at StumbleForward
Why You Should Pay Off Your Mortgage Before You Retire at Make Money Make Cents
Underwrite Yourself a Loan at Narrow Bridge Finance
Excuses or Choices at Eyes on the Dollar
How to Find Your Passion at Breath of Optimism
Spending on Daily Items – Quality or Price at Reach Financial Independence
5 Ways to Maintain Your Wealthy Status at Modest Money
What Makes a Person Rich at One Smart Dollar
The Government, The Internet and The Surveillance State – Graphed at Don’t Quit Your Day Job
My name is Derek, and I have my Bachelors Degree in Finance from Grand Valley State University. After graduation, I was not able to find a job that fully utilized my degree, but I still had a passion for Finance! So, I decided to focus my passion in the stock market. I studied Cash Flows, Balance Sheets, and Income Statements, put some money into the market and saw a good return on my investment. As satisfying as this was, I still felt that something was missing. I have a passion for Finance, but I also have a passion for people. If you have a willingness to learn, I will continue to teach.