The Month of Spending Money and Realizing Mistakes: March

This Month in Money March

An absolutely crazy financial month. Not just from me but all around my orbit. I have had some issues with my finances to start the year. It has definitely not been a smooth transition from the most money I had ever saved to probably the most money I have ever spent in a three-month period. I still push through, hoping to get back on top of my progress to my goals. The year is still early, and I would say I’m good with money. Stay out of debt, fund retirement, pay the bills, go on a few vacations. It has all been going well.

Now, we will switch tones. People in my life are struggling with their finances. One person that was in the vehicle market a few months ago and I told them not to buy the truck that is almost as much as their salary, and they didn’t listen. They are currently looking for a way to refinance their vehicle. A six-year loan term wasn’t long enough, they have been stretched thin and are trying different options to lower their payment. Making $50,000 a year and buying a $42,000 truck is not good financial sense. And somehow, he is just starting to feel it. I have seen other people buying $35,000 vehicles on $40,000 a year and it is similar. It sucks that I told them that they should go for something cheaper. It’s hard to see people struggling when you know the struggle was possible if not inevitable. People need transportation, we are a car-dependent society, but you don’t need a vehicle, that’s 80% of your salary. The struggle with vehicle loans has started and it might be extended in this person’s life if they decide to refinance into a longer car payment. $0 in retirement. Mind boggling to me. I didn’t know what to do. I guess I should have pushed harder in opposition before the purchase is made. Finance is such a sensitive topic that people don’t want to talk about it. Especially, if you have a negative viewpoint of their potential purchase.

Speaking of negative viewpoints. I have another person I am involved in their money decisions completely going off the rails. In the last few months, I asked them about their debt going down, or at least not making any purchases on credit cards and making progress that way, which they haven’t done. Still digging a larger hole. Add in the fact they purchased a dog, purchased from a breeder. A dog that another person I know paid a few grand for. The ratio is now one human to three animals. I received a BOMB recently; they plan on buying a house. This person has $0 in retirement, thousands of dollars in debt. And they want to buy a house. A person that can barely make their house payment without a second job. I am a bit confused why they think they have the money to do that. To put themselves in a harsh position, to put themselves in a worse position. I don’t even know what to say to this option. Do I fight back hard. I have no idea. I feel like it’s an awful idea. Paying for a water heater, a roof, an a/c maybe all the above in the next five years. It all goes on a credit card. $0 in retirement, they have to survive on social security if it even exists at that time. Buying a house with $100 in your checking account most months, and not even $1,000 in savings, would not be what I would do. Having to work two jobs just to stay afloat.

I love talking finance, but I am at a crossroads. I don’t know what to say when I think people are making incorrect moves. Who am I to stop them? Who am I to tell them I don’t think it’s a good idea? Even though my track record is pretty good on what is a good idea and a bad idea when it comes to money. Usually, it is common sense based but common sense doesn’t exist in finances. It’s more based on emotion. If I live without roommates, life will be easier. So, you live in a one-bedroom apartment and have to work two jobs to afford it. If I switch jobs, I will be happy. I have said this one a lot. Parts of it are true. If I buy a dog, then I will be happy. So, you buy a dog. If I buy a house, I will be happy. So, you enter the house market prematurely. I have heard, if I have a kid, then I will be happy. It is a lot of if/then statements. Lots of goals to hit before happiness can start. So, you swipe and swipe and swipe, get into a hole you can barely keep your head afloat. I use if/then statements when it comes to happiness. I also know I want to secure my future. I don’t want my kids to have to worry about how they will split up the nursing home payment. How can they retire me. It is a fear of mine. Fear is a good fuel. I want to be able to travel in my later years. Have the opportunity to work, not make it mandatory. So, I save. I also want to enjoy my life currently too. I am trying to work out a way where I can strike a good balance between the two. Enjoy my life. Hit goals. Life right. But I also secure my future. Sometimes I care about the latter more. I say no to too many things, but they are my goals, and I want a secure future for my family. Not be a liability.