The USA Spoiled You- Now Pull Your Panties Up.
By Steve Poland • December 12, 2008
It is amazing how “rich” the USA is — or at least how rich they think they are. I bet 90% of Americans that have access to a credit card, are stupid with their money. They overspend. They spend what they don’t have. Why? Because they can — the credit card companies have given them access to more cash then they should ever need in their lives.
It’s ridiculous. And it should be a crime. There should be some personal liability at the banks for the turmoil they have put people in, and this nation. There needs to be more financial independence in America.
The media and stardom hasn’t helped — nor have the parents that neglect their children and then spend their riches on them, spoiling the hell out of them. It’s a downward spiral — little Johnny comes to school in $100 sneakers, and then little Mark [who comes from a poor family] wants the $100 sneakers, because little Johnny is cooler. Little Johnny is a spoiled brat — and it’s likely because his parents shouldn’t be parents and/or don’t have the time to spend with him, so they feel they can make it up by buying him blingin’ sneakers.
There shouldn’t even be credit cards. If your car is broke and you can’t afford to fix it this week, then take the bus for a week. Suck it up. Oh, it’s an additional hour of your life each day, waiting for the bus and such? Tough shit.
I never had a financial plan. I had been in debt since I was 18, when I was given 5 credit cards from financial instititutions, while I was going to college. How did I get access to 5 credit cards? Seriously, someone should be sued. People aren’t taught financial responsibility — they are taught to spend, spend, spend! And that you don’t have to ever say no, just say yes!
I know, I know, I’m ranting here. But I’m saddened that people are in complete financial disstress and in messes they can’t get out of, without killing their “credit”.
Make a plan. Plan how you’re going to get out of debt. Plan how you’re going to sock some money away in savings, while getting out of debt. Plan for what’s going to happen if you lose your job — plan to put 3-6 months of expenses in a savings account, “in case shit” happens.
It’s amazing how rich you feel when you’re out of debt — I was paying $500/mo to credit cards on a 5-year plan through a non-profit credit counseling company. You know what it’s like to not pay $500/mo now? It’s crazy madness! Now I put that money in savings.
I make some decent money these days — my first goal was getting out of short-term debt (credit cards). I also owed my Mom some money that I had borrowed. After getting out of credit card for the first time in 11 years, it was such a huge weight lifted off my shoulders. Until you do it, you’ll never know what it feels like — it’s amazing. What was next? I drive a 1995 Nissan Altima with 160,000 miles on it. Of course the next thing for me to do is upgrade this car — hell, let’s get a new car under a lease.
FUCK THAT. I’m still driving that piece-of-shit car. I’m driving that sucker into the ground. It’s paid off. I have no payments on it. Your mindset changes, if you let it. You start to not think, “wow, how can I spend all this new money I have” and turns to “how do I conserve this cash”. In the case of the car — I like to say [and yes, this is inappropriate] — “I know the size of my own d*ck, I don’t need to show it off to everyone else.” I don’t need the self-esteem booster of some shiny new ride. Yeah, I know I could get one – but it’s not on my list of priorities.
My only priority now is diversifying my income streams to ensure one thing — never working for anyone again in my life. I never want to go back into corporate america.
I got distracted — because I didn’t have a plan. I’m throwing a big New Year’s Eve party in Buffalo NY for 500 people. Stupid, stupid, stupid. Throwing parties/events is not on my gameplan of diversified income streams. It’s something I’d like to do, but not for a few years, when I have full financial independence. Too late though, I’m going through with it. Lucky enough for me, it looks like I won’t lose my shirt on it (and I’ll turn a profit), but at what expense? It’s taken a lot of time in my life — a lot of time that should have been spent on my real priorities.
By the way — I disagree with the whole “I can’t make bad on debt, because my credit will be ruined for 7 years!” You know what, GOOD. Seriously, once you get to the new mentality where you’re only going to pay for what you can afford, you won’t even care about your credit being bad for 7 years — because you’ll never want to access credit anyhow. “What about a house?” — what about a house? Save your friggin money. Oh, you want one of those blingin’ homes in the suburbs? Marry someone with good credit. Or get a co-signer for that thing when the time arrives. Or get a private loan (you may need to put half down and pay like 12% on the other half, but hey, you’ll have your house). Who says a home is a good investment anyway? My buddy was telling me that he read somewhere that with all the money you put into closing costs, home improvements, mortgage interest, etc — that you’re just as well off investing that money into various securities, and just paying rent. Think about it.
Make a plan. Get out of debt. Even if it takes you 5 years to realize the end goal.
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Comments
3 Responses to “The USA Spoiled You- Now Pull Your Panties Up.”
Got something to say?
Mate. I dont know where to begin. Even though what you describe is not going to happen anytime soon (people realising that a cool car is just another way to mask their insecurities and so they dont need it), it is really really heartwarming to read from people like you who believe in the old-values.
Kudos mate. Kudos. Keep em coming. Even though it may not happen soon, only with people like you voicing the reality, can it happen any faster.
(by the way I still drive my mum’s old camry that we bought 15 years ago!!!!)
Cheers
Sri
You honestly tell it like it is.
Isn’t it so freeing to be one of the few people who aren’t panicking about the recession?
Granted, my husband is in the Air Force, so we have more job security than most, but also the added worry that there’s a war going on…
But I’m with you – I’m working on my independence – work for myself, not for someone else.
Valid points, but a bit oversimplified.
Remember that in the U.S., health insurance (a decent plan) could be upwards of $1,000 per month (and that’s post-tax dollars you are paying for it). That expense alone is enough to have many families (who are not the beneficiaries of company-sponsored health plans) generally on the edge of financial difficulty.
When that car breaks down, the bus is a great option if you are single in live in a metro area. But what happens when you have kids going to different schools, and you yourself have to get to work? Throwing that mechanic visit on the Visa (versus “tough shit” and riding the bus) is unavoidable.
Now, the excesses of buying pleasantries (nice dinners out, LCD tv’s, houses that are way more expensive than one’s salary can reasonably afford) – those are the types of credit-induced hallucinations where people seriously need to wake up.
I made the same mistakes you did with respect to getting credit cards in college and maxing them out. Expensive lesson. But was I naive enough to really think that was free money, or to then turn around and blame the credit card cos? Of course not. I looked at myself and my behavior and that was where all the blame belonged.
Of course I continue to have transgressions with credit, but never on the scale of my previous mistakes. I consider myself lucky to currently be in a position of zero cc debt (thank god, with what 2009 is looking to be economy-wise).
But I think there is a very high percentage of families out there that find themselves dipping into credit for stuff that you can’t really classify as frivolous spends. The tough shit, take the bus example doesn’t hold water for people who rely on their cars for commuting. Health insurance, emergency home repairs, parking tickets, legal problems – life has a way of hitting you with two or more unexpected things at once. And I think credit is a necessary cushion for people to lean on to get through tough times.