9 Ways I Could Have Avoided Debt
(Friends-I’m working on some really good posts, I promise! Instead of throwing them out there without any editing, I want to take the time to do them right. So in the meantime, here’s a quick post that was shamelessly inspired by Smart Passive Income.)
I don’t live in regret. It’s no way to live! But at the same time, I can’t pretend that I’ve done nothing but stellar decision-making in my first 28 years. I’ve definitely made some mistakes, most of them related to my finances. So if I were to go back and do it all over again, I would avoid some of my money-sucking traps, listed below for your analysis and/or derision.
9 Ways I Could Have Avoided Debt
I'll probably be OK with never eating at a Ruby Tuesday's again for as long as I live.
9. Not bought a new outfit for every ‘occasion’ that seemed to warrant it. Every year, there are weddings, holiday parties, important work functions, family celebrations and other big to-do’s where one needs to look good. Even if I didn’t buy a new outfit for every event, I bought one for at least a few events each year. At the last minute. Not on sale. Tsk, tsk!
8. Not gone food shopping hungry. This one makes me laugh. I can see myself at the grocery store over the years loading up on Hershey’s Bliss chocolates, salt and vinegar potato chips, three different types of melons and every other craving known to man. I was always impulsive and I’ve never felt the need to cut back in my diet. But now I see how an extra $25 in fun foods every time I go to the grocery store can add up.
7. Not bought a brand new car. Car payments take a chunk of money away from you every month for 2-6 years, and you pay interest on a depreciating asset. I’m happy that I have a very reliable car that’s nearly paid off, but it took four long years to get there.
6. Not carried my credit cards with me every time I left the house. If you don’t have a way to buy stuff, you can’t buy stuff you can’t afford!
5. Not felt compelled to travel. Experiences are once in a lifetime but I also don’t want a lifetime of debt. I’m staying grounded as much as possible until everything is paid off. Once I learned to have fun at home I didn’t feel the need to escape anymore.
4. Not worshipped designer brands. I used to think I had some special talent for identifying which brands were hot and which were on their way out. But couldn’t anyone do that with a few quick reads of Vogue and Lucky and some fashion blogs? I’m not Bryanboy nor do I want to be and I just feel a lot more relaxed about the whole “what are you wearing” question.
3. Not eaten as much fast food and ‘fast casual’ food. Mediocre chains. Friday’s, Ruby Tuesday’s, Cheesecake Factory or horror of horrors, Olive Garden (my apologies to people who live in places where these restaurants are the only dining options, like my college town). I still love an excellent meal out. I wouldn’t trade the amazing meals I’ve had at little spots like Cafe Aletta on Long Beach Island or Bay Park Fish Company in San Diego. And those spots end up being at the same price point as the middle-priced chains like Friday’s. I’ve spent so much money at these places over the years and it’s not like I’ve ever walked out thinking,”That was the finest, freshest meal I could have had tonight.” It’s more like “I just ate some gigantic portions of totally average food and now I feel so full I’d like to take a nap or puke or possibly both.” (That was one friend’s description of Claim Jumper).
2. Cared about saving. I just never cared. Who needs savings? Savings for what? I’ll just make more money! Over the years, I’ve tried saving a few times, but eventually raided the account for some reason or another. Savings accounts are an endangered species in my world and I’m a completely unscrupulous poacher who’d like to get my hands on that very last specimen (or dollar). Now I really want to have savings that just sit there. Maybe I’ll invest part of it, but some of it is just going to sit there and look pretty like Dayana on Celebrity Apprentice.
1. Made a plan. A real, serious, honest-to-goodness plan to pay off debt and spend less. I’ve had some amount of debt since 2004/5. Instead of just letting the balances slowly creep up, I could have sat down weekly and figured out how much I could pay. I always let other things get in the way. Since I’ve gotten serious with my plan in June of last year, I’ve seen my debt go down. Even when I’ve made mistakes or thought I was doing badly, I’ve continued to make progress. It’s been the commitment that’s made a difference.
Have you always avoided debt? What’s your secret? Let me know how you would or have avoided debt!
I’m with you on buying new outfits all of the time. I used to buy one every time I wanted to go out with my friends, which in my first few years of college was a whole lot! I’d buy a dress for $30-$50 and now I have an overload of them that I never wear.
Re: Travelling. I think (personally) it’s an investment in yourself. I wish I had spent more money on it.
No, I was pretty much like you for the majority of my life. In fact I think you got on the right track sooner than me (at 39…I never claimed to be smart). I think the best part is that you are on the right track now. Hope you get those debts paid off soon so you can travel again
great tips.. and i am guilty of all of them as well.
i think its okay to do most of those.. even buying designer clothes or eating out.. as long as you can do it without using credit cards.
@Daisy: Don’t get me wrong I love to travel and explore. I just did it on borrowed money, which is bad.
@Steve: Me too! This will be a tough year for me, learning to sacrifice and all
@Jefferson: Yup, these are the ones that got me in trouble. I never said I won’t do them again when I can afford it
Thanks for being so open about some of your mistakes… I can definitely see myself falling into the trap of buying new outfits for special occasions.
I love point #3…my entire journey through college was filled with ONLY eating fast food.
I’m pretty sure I didn’t cook a real meal at my house for 5 years or so. What a waste of money!
ugh. I’m guilty of most (all?) of the items on this list.
I don’t know why I cared so much about designer brands. Now it’s like the more money I make and the more nice things I can afford, the less I want to buy them.
I also just never watched my money. I got it and I spent it, I didn’t care where. I thought money existed to be spent. If I had money it felt like I HAD to spend it — and I would look for something to buy even if I didn’t want anything.
So glad this is in the past and I have things under control now!
Bridget, why must you read my mind?? “I thought money existed to be spent. If I had money it felt like I HAD to spend it” this was me for way too long. Talk about burning a hole in my wallet!
My history also includes not caring about savings and dining out a lot. I’m not into designer fashions but I do enjoy travelling and I use to buy a lot of home decor items. I regret the lack of savings and all the home decor crap, but not the travelling. There is so much to see away from home and so much to experience.
You know most sentences that end in “avoided debt” are really great ones. One exception is when they include “could have,” haha.
That’s OK – these are now your ways to avoid future debt. My dumbest (little) debt move was buying a motorcycle with a student loan… that’s right….
@jefferson: I disagree with your comment about credit cards. Just because you can afford to pay for such indulgences with cash, it doesn’t make them better. That’s still cash that could be going towards savings or more beneficial purchases. Also a credit card can save you money if used responsibly.
This is a great list you’ve put together. I am right there with you in the don’t shop hungry camp (but not because of the cost in $, but in fat) and the fast food and casual food. I only really eat at a fwe restaurants now-a-days, and it’s because I really do enjoy the food there. Most of the time I even get the same meal. I go enough different places that when I pick a restuarant, I’m really picking the individual meal that I want to order. And now you’re on the right path. Just make sure that you do treat yourself at least a little bit when you reach your goal!
I really wish I had started tracking my spending and making choices to save more money in a savings account. Had I been smarter about my choices I would have spent less on credit cards and realized my financial reality sooner. But better to start now than never!
When I shop hungry, I buy ALL sorts of things. Everything I see looks good… I think I’ve walked out of Trader Joes with $100 in snacks (ahem, junk food) before.
@Well Heeled: Trader Joe’s! That’s a tricky place…you can get some high quality food for really reasonable prices…or you can buy all of their amazing snack foods instead. I’m thinking of that bucket of chocolate chip cookies and the chocolate covered acai berries!
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If these were the only mistakes I had made, I would have been in good shape. Sadly, I made these and so many more. I attracted debt like celebrities attract stalkers. However, it’s good that you’re open and honest about your mistakes so you can learn from them and make sure that you don’t repeat them!
Sounds about right! But where is ‘earned a lot more’ on this list? As it stands it is all about ‘not doinf things’. Lately I have been wondering is it really that wise to delay gratification? Particualrly in things that our souls really crave. It may be designer labels, gadgets, anything. You see, I was reminded that one can save every cent/penny, dream about doing all these splendid things when retired (rich and early) and then drop dead; or worse become disabled.
One day on my deadbed I want to regret the things I’ve done not the things I didn’t. But I’ll make really sure that I am able to pay for them (in fact I have been doing).
@Maria: You’re right, I could have earned more too! That is the next focus of my blog, which is how can I earn more to pay off debt faster and create a larger amount of savings? But one HUGE part of that is learning to be consistent, which I never was. I am now, so I hope to see a difference in my income because of it…
I agree that there are things we all could have done to have avoided our levels of debt. But the real key is not shoulda/coulda/woulda. Like you, I don’t believe in regretting the decisions that have brought me to this point in my life. I like who I am. I like where I am. Of course there are things I want to change. If I din’t want to change something, I’d be dead.
So the key is not to regret what you did in the past, but to change your habits to not do those things anymore if they don’t bring you value.
Gail Vaz-Oxlade had something interesting on Princess the other day. She brought in a stylist to teach the princess about purchasing the same look for less. The stylist said that people hide behind designer labels because they’re insecure & don’t know what’s actually fashionable. I’m not saying you’re insecure personally, I just thought it was interesting food for not.
Ahem, food for *thought*. I have a new computer and the keyboard has a new setup!
@kim: That’s a totally good point. I never thought of myself as insecure, but I definitely let my look and certain labels give me a certain amount of confidence. It’s much more difficult to get away from designers and try to put together a look independent of the trends of the moment!
I go grocery shopping hungry all the time. I know I shouldn’t do it, but it just seems to happen, esp when I go right after work.
This something I need to work on.
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I have realized that when you are wearing a designer…99.9% of people have no idea.
I went shopping hungry and came home with blueberry muffins….
I think you’ve covered pretty much all the areas where most of us could learn to handle better. As for credit cards, I know we all have a love-hate relationship with them, but for me the best thing I did was to get rid of all mine. I now just my debit card (oh, and cash).
[...] Debt Project had a week of outstanding posts this week. For me, though, the one that stood out was 9 Ways I Could Have Avoided Debt. I’m a little jealous she was able to narrow it down to only [...]
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I agree with you on each point except number 5. I know I won’t get to the end of my life wishing I’d gotten out of debt three months early instead of going on an adventure of a lifetime.
That’s true, I would probably have still traveled, but if I had been more prudent, I wouldn’t have spent a ton of money elsewhere.Then I could really afford the trip!
[...] (or at least, I took it as a criticism) the other day saying I only talk about how I lost money and made mistakes on my blog. Well, yeah, money has been one of my biggest weaknesses in my life! It’s where [...]