Improve Your Finances By Learning From My Mistakes
A weekly insight into my life.
My first blunder with money
I was 20 when I decided to get my first credit card.
I was told how important it was to build credit. I figured since everyone around me had this neat card they use to pay for things, I did too.
I knew I’d have to pay off whatever I spent. There was no way I would allow myself to get into debt. Looking back, I’m glad my limit was only $500.
After a couple months of paying off small balances, I quit the call center where I was working.
I was still mastering time management and my grades were suffering. With no income, it didn’t take long before I maxed my card.
No excuse or reason could make up for the fact that I was now, for the first time in my life, in debt.
Improving my personal finance habits
It was out of a survival instinct to pay for food, that I needed to bring in income.
That led me to working at McDonalds. Although fast food was a common job for college student, I felt I reached a low point.
Luckily for my situation, I found a job working on a grounds crew during the summer break. I made good money and developed personal accountability.
Coming back to school after that summer, I had not only paid off my debt, but I managed to put away a couple thousand for savings.
I got back to school and landed a job right away working in direct care. I felt like my financial struggles were in the past.
It only took 10 months to get back into debt.
Another downward trend
Even though I had money coming in, I still was in the habit of eating out and spending more than I was making.
I had also opened up a second credit card with the intention on gaining discounts and rewards on purchases.
Regrettably, I found myself with a balance greater than I could pay within one pay period.
I took a long hard look at my unnecessary expenses. I cut down eating out. It took several months before I consistently saw positive net income.
I paid off and closed my first credit card for good. More importantly, I learned to internalize the importance of my personal finances.
It’s important to save for a rainy day. That was my lesson learned.
The knowledge I learned provided me two principles worthy to share with others. Here they are for you.
My insight to you on improving personal finances
Focus on goals not quick results
To achieve lasting results for yourself, create a goal. If paying down debt is the goal, don’t get upset and quit if you find yourself slacking some days.
I became more committed to the process when I focused more on what I could do, not how often I did it.
For me this meant tracking my income and expenses. In your situation, this could be a spreadsheet on excel or a personal finance app like Mint.
Discover that you tracked a week which you spent more than you wanted to? Congrats, you’re like most of us!
Focusing on a goal for your finances will help keep your perspective and motivation.
Growth is never by mere chance; it is the result of forces working together. — James Cash Penney
Consistent effort
After my second run in with debt issue, I learned that it wouldn’t be a quick fix to get out of debt. I decided to track progress. That gave me hope.
Moving toward a goal is possible with consistent progress. Recognize that some weeks will be better than others.
Be proud of improvements that you make, no matter how small.
Do not compare your situation with others. They aren’t living your life and you shouldn’t try to live theirs, either.
In age of instant gratification and information, it’s hard to come to terms with slow progress. In the end, it’s your race against yourself.
I’m an aspiring HR professional with a purpose to help individuals develop career fulfillment.
I send out monthly newsletters with professional and personal insights to uplift and strengthen employees, no matter their role or organization.
I rotate topics designed for work/career growth, and personal finances.
