Pretending to be rich

Spending trap for a young professional

First nice paycheck got me fired up and feeling on top of the world. Spending money on things I couldn’t afford before like clothes, gadgets, parties, fancy dinners, house. Pretending to be rich as a 21 year old with job that for once payed more then minimum wage.

Fast forward to early October 2016… credit card debt of $3,123, 50 bucks in savings, and a mortgage for a townhouse.

It got overwhelming, entry level job paycheck couldn’t keep up anymore. End of October came with more news, my car engine had 2 weeks to live. Papers were signed and hooray, here is $14,000 car loan. My parents were kind enough to give me a loan of $5,000 to cover down payment for the car when I already owned them $6,000 for townhouse down payment. Luckily its the only loan I don’t have interest or a deadline on and I’m able to wait and pay other debt first( updated debt pay-off plan).

Last month I payed off my credit card, made all payments for mortgage and car loan on time, something even went toward savings account that is not a two digit number anymore.

While I was able to pay some of my debt over the last 6 to 7 months my spending increased first week my credit card had zero balance. I would create a budget but hardly stick to it by going shopping as a therapy for stress or out of boredom on my lunch break. Working 8 to 5 brings a steady paycheck making budgeting an ease, I just need to make it happen. Paying off debt and not acquiring more would give me a chance to go back to school by becoming financially responsible for future self.

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