Our struggle with debt

I was never taught how to manage money.

I was taught to balance a check book, but not balance my spending and saving. I was reassure getting a loan and purchasing was new (to me) car was the right thing to do. I was never taught to put most of it away. 12 years later, I finally realized: If I can't pay for it in cash, I probably don't need it that badly.

I hope to change this shortfall with my kids. I hope everyone that reads this blog starts to have a similar mindset. Yes, there is good debt to have - like a mortgage or insurance. But that brand new car can wait. Unless you're buying cheap to fix up and flip, automobiles are losing you money. That is with maintenance, fuel and depreciation alone. What happens when it need a major repair? I hope you've been saving! 🙂

I've been there, showing up in the new truck or car. Feeling good for a few days. But that feeling doesn't last the 3 to 5 years loan!

"In 10 years, the $34,000 car will be worth less than $10,000 due to a ~70% depreciation schedule. The investor of the $30,000, however, could have investments worth 5 to 6 times more!"

You need a plan. You need to stick to that plan.

I believe debt should come first. Pay off that credit card and then the next! But always put a little away into at least a savings account. It's hard to make money with interest when higher interest is in play.

Of course,  there are better alternatives to a traditional bank's savings accounts, (ex ALLY @ 2.15 APY). I'd still recommend putting money into an investment strategy. Acorns has gained $2.64 (2.80% on $94.34 initial investment, $96.98 total) in just a month. It would've taken an APY of 2.15% a year to increase to 102.17 with just a $100 deposit.

Let's face it, nice and band new things are great and advertisements have us all chasing that dream. I see too many young people blowing their paycheck to feel good about themselves for a short period of time.

I'm here to tell you: Slightly used is OK. Money management is awesome and you don't have to go out every weekend. Hopefully opening your portfolio in 15 years and thinking "wow, that was worth it."