One of the hallmarks of personal finance blogs is the blogger’s journey towards debt reduction. The causes of debt vary, but usually it’s some combination of naiveté and poor impulse control. Sometimes it’s responsible debt, as is the case with my friend Melissa and her hefty student loans. Or maybe a mortgage.
But mostly it’s stupid things like fancy cars and electronics.
The story usually goes like this: Boy meet credit card. Boy foolishly spends money. Boy has personal finance revelation. Boy starts personal finance blog.
Frankly, I’m a bit bored of these blogs. They seem to re-circulate the same few ideas over and over.
How many of these themes have you seen repeatedly in the p.f. blogosphere? (I’ll admit I’m guilty of a few myself.)
- “Start saving for retirement”
- “Compound interest rocks!”
- “Pro vs. Con: Why I Choose to Have Taxes Withheld from My Paycheck”
- “Go Green to Save Money”
- “Invest in Yourself - Exercise, Eat Healthy, Etc”
- “How to Increase Your Earning Power”
… blah blah credit cards, blah blah interest rates.
Part of the reason for my ennui is that I have been reading some of these blogs for more than a year. It figures that eventually I’d hit a plateau in my personal finance education.
But the other part of the reason is that I can’t identify with these people. I can’t relate whatsoever because I rarely spend money foolishly. I don’t have a shameful, debt-ridden past to repent.
In fact, I’m a debt virgin. I’ve never been in debt. Ever. I’ve owed friends $20 to cover dinner, but I have never had real debt.
I paid for my car in cash with money from my summer job when I was a senior in high school. Back then I paid for a lot of things: gas, clothes, movie tickets, and car insurance. I didn’t have buckets of money, but I worked all through high school and I never had a problem saving money. It just was not that hard for me.
When I turned 18, I got my first credit card. Now I have three, and I’ve always been able to comfortably pay in full at the end of the month. I use a credit card for all of my day-to-day purchases because it awards me points and is more convenient than cash. But I don’t need to.
These days I rent (with two roommates) in a modest townhouse in a decent neighborhood. I usually bring my lunch to work and (besides salads from Chipotle) I barely eat out. My furniture is exclusively IKEA, my PowerBook laptop is two years old, and I shop at outlets.
But I’m comfortable. I was able to max out my Roth IRA in 2007, and I plan to do the same in 2008. Soon I’ll be eligible to start contributing to my new employer’s 401(k), too.
There’s nothing I really need to be happy that I don’t already have.
Admittedly, I was also very fortunate. While I did earn a few thousand dollars in merit scholarships, my parents covered the rest of tuition, and my school wasn’t cheap. We had a partly deserved reputation for being good ol’ boys and rich bitches. (I say bitch, by the dubs, in a non-misogynistic, “full of love and respect for powerful womyn” kind of way.)
I graduated without a single penny in debt. So did most of my advantaged friends. (But unlike many of them, I held a part time job all four years of college. Please don’t hate me.)
I can’t help but wonder if I’m missing out on some life-shaping experience. Would I be better person today if I had conquered wasteful spending habits in my past? Would I be smarter if I had to learn about credit cards the hard way? Might debt have made me into a super-frugal person instead of merely a frugal one?
But there’s another fear gnawing at the back of my mind. Just because I’ve avoided debt so far doesn’t mean I’m immune forever. My ‘00 Jetta can’t last too much longer, and I doubt I’ll be able to pay cash for its replacement. (I want a two year old Prius, if possible.) And don’t even talk to me about a mortgage. The mention of the word sends a shiver down my spine.
Actually… I think I’m scared of losing my debt v-card.
Tell me, worldly readers: Is it going to hurt the first time? Will it get better as I have more debt experiences?
Do you think I should give up my debt virginity? Or should I keep holding out?
I have car debt now. I could easily pay for it in cash right now but my savings interest is more than the interest on my loan. So sometimes it’s better to be in debt.
@Mike. That’s awesome. My savings account APY is barely 3%. :-\
Hold out. Sounds too nice to mess up.
Thanks for the advice Jansen. That’s generally the plan for now… Debt is just too much to think about.
Oh to be a debt virgin! I can’t say I am one I am learning the hard way. I’ve got a healthy mix of student loan debt and a tiny bit of impulsive debt that I have under control now. Since my undergrad school is also on that list, I’ve got to say I wish my scholarships would have been enough to not need student loans. Good for you to be able to graduate without any debt! There is no need to have to go through hardship when you can achieve the same outcome by making the right financial decisions. Don’t feel bad and people don’t really hate _you_ for it. They are just jealous of what they don’t have, never take that part personally. Embrace your good fortune with debt, family and education.
I love this post. I’ve been debt free for over 7 years now. I had some student debt after my second degree. The debt felt horrible. Terrible. I was miserable. So no, I don’t think you’re “missing out on some life-shaping experience.”
Stick to buying Burberry briefs on sale, and all your “life-shaping” needs should be covered.