Jump off the “hampster wheel”
Who Said what about a ringer?How we get caught in the hampster wheel:
You have to humor me on this one. Case and point, and I will try to keep this as short and sweet as possible. But, I must warn you it will leave a bitter taste in your mouth. So… here we go!
It all starts with freshman year of college after you sign you promissory note saying yes to the promise to pay back every cent that you are going to borrow. At this point you are really not sure what you are doing you just want the college parties to rain and the classes and studying to begin.
You make it and graduate and to your painful surprise you have amassed quite a sum of student loans that you now need to pay back. But, wait, you can’t pay it back because you just graduated and you don’t have a job yet. All you have are a couple of internships that didn’t amount to anything. You’ve got the banks knocking at your door for repayment so you defer for 6 to 8 months and then you defer again when that period comes to an end.
During this time you get married and buy a house. You have another surprise, oh she is expecting. Now you purchase a mini-van or SUV for you big car lovers out there. This is the typical cycle of life as we know it now. The downturn in this story is that you haven’t paid on the student loans yet but you have racked up quite a bit in other debt along the way.
Your search for the ultimate job that’s going to allow you to strike it rich is now more of a dream deferred because in order for you to make that kind of money in your field you need 20 more years of experience and 2 more degrees which would put you in more student loan debt. In this scenario you don’t get ahead either because once you increase your debt your income still decreases or you break even until you can pay back what you owe.This is you going through the ringer. This is what you must avoid at all costs.
Here’s what you can do to avoid this and jump off the hamster wheel syndrome:
1. Live below your means to make it in your younger years. Delayed gratification is one of the best things that you can do to make up for a financial shortfall. Seek financial coaching and make sure you protect yourself and your family while you are building your wealth.
2. Finish school as soon as possible and avoid using too much loan money. Apply for scholarships; you can get scholarships for just about anything these days.
3. Avoid using credit for huge purchases after you graduate. This just delays the inevitable. If you are laid off or fall on hard times for any reason you stand the chance of losing everything and ruining your credit at the same time.
The best thing that you can do for yourself is play the money game smart. Avoid the normal path that leads to mountains of debt and avoid the enticing creditors who give you a quick way out of your burden by allowing you to acquire more and more debt.
Jump off the “Hamster Wheel” and run your own race without getting stuck running in place.
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Happy Friday!!
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