Sure way of getting into debt and how to avoid it (Part II)
To my audience there, I say “you are welcome back”. And if you are just visiting this website for the first time, I like to warmly welcome you too. I hope you are going to find information that will be helpful to you. I started this series of article entitled “Sure way of getting into debt and how to avoid it” last week. And I promised to write the part two. For the benefit of new comers, this is the continuation of the first article. If you missed the first one, you can read the part one here before you continue with this one.
Actually I never knew that it would take me this long before I could write the part two. What actually happened was that I received a called from a client (a new one of course) on Saturday that I should come over to help them resolve some issues in their company which is almost putting their operations into a halt. Being a very far location from where I was, all I could do was to promise to resume in their office on Monday. Because of the urgency of the task, I left home as early as 5.00a.m on Monday. Good enough, I was even the first person to report at their office. I had to wait for some time before they came. I still preferred it that way. That is me for you. But unfortunately, I couldn’t resolve the issue that very day with all the troubleshooting. I got back home 23.45p.m in the night. I was very exhausted to do any other thing. Tuesday being the following day supposed to be a holiday but I had to sacrifice my pleasure and ensure that I helped the client resolve their issues. I thought I would be back home latest by 12.00p.m but I couldn’t until 20.10 p.m. The only difference this time around was that I was able to help them fix the issues. Everyone was happy. My happiness was not even in the monetary aspect but the fulfilment that I was able to provide a solution to another person’s problem. The good news is that, with all indications, I might be on retainer and there is possibility of getting more new clients through them.
Read Also: Debt Management: Do-it-yourself approach
The whole scenario made me remember what my mentor told me when I was about taking the plunge from my salaried job and start my own business. He hinted me that I should get ready to put in more number of hours. He advised further that entrepreneurship is not a 9am-5pm kind of job. He was actually correct. I have had causes to work late into the night and even sacrificed my weekends and holidays. Self-employment is actually demanding but also rewarding.
Hey, I have digressed too much. But I believe, some will also pick some useful information from the experience I just shared with you. So, let’s get back to the main business.
Sure way of getting into debt and how to avoid it
There is a popular saying that states, “Show me your friends, I will tell you who you are”. This applies to your finance too. The people you move with have a way of influencing you and your behavior. Let me ask you these questions. Who are your friends? Who is your spouse or partner? If you keep or move with people that don’t have the same financial goals or discipline with you, you may probably spend beyond your means thereby leading you into debts. At times, your friends may even be financially disciplined. Buying luxuries may not necessarily means that someone is not disciplined in his spending. If they have the means and they can conveniently do it without jeopardizing their finance. Why not? The problem is that if you move with this class of people and you want to do what they do without you having the same financial muscles as they do, you are on your way into debt.
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For instance, your friends may be riding Lexus Jeeps while what you can afford is just a second hand car. If you are forcing yourself to measure up with them, you may live with debts the remaining days of your life. Please, I don’t want you to misunderstand me. I am not against moving with people who are better than you are. After all, you need people who can motivate you to aspire more, do more thereby helping you to achieve more. The problem lies in not knowing where to draw the line. If you are “my friends are doing this, so I must do it” type of person, there will be problems.
It also extend to your spouse. I hope I will not cause problem in this area. I will write with reservation here. But what I will encourage you is to marry a person that is not flamboyant. But if you have already married. Try to sit down with your spouse and let him or her see reasons why you need to plan your finance. The best way to do this is to set financial goals together. With this, it will be easy for the two of you to pursue the goals together. You will know why you are doing what you are doing. You will also know where your money is going.
About the friends you keep, I will borrow a man’s word. He said, “Friendship is not by force, it is by choice”. If you realize that your friends may likely lead you into debts, you can quit the friendship. If you don’t want to quit the friendship, then you must be disciplined enough to be yourself. But with my experience, I don’t see how your friends will not influence you. For instance, during your birthday, they buy you expensive gifts. Respect begets respect, they say. During their own birthdays, you will like to reciprocate even though it may not be convenient. You go out together, they wear designer’s dress. Come ‘on, you will like to get something close if at all you can’t wear the same stuff.
Read Also: Effects of Credit Purchase on Your Personal Finance
I don’t want to write much. The conclusion of what I am saying is that you should choose your friends and companions wisely. They have a way of influencing your lifestyles, behavior and your personal finance.