Finances, finances, finances

Last night we met with our financial advisor, to start making long term choices about our lives. I really don't want to think about retirement, but as I see my parents nearing the age I know I need to do something. They are not prepared, they have mutual funds and stocks but through bad choices they won't be ready to live their lives any time soon without income from employment. I don't feel sorry for them, they made their choices and that's what they have to live with. I've seen their mistakes and have learned what not to do. They are in a constant state of debt that they do without to pay off then start all over again. They buy frivilous things and borrow out of retirement to pay it off when the payments get to be a burden. It's not my problem...

We started out much in the same boat. Children learn by example, I used credit cards without thinking of the consequences because my parents paid them for me. I racked up thousands and thousands of dollars in debt while in college without a care in the world. My husband did much the same thing. His idea was, "I'll be graduating soon and I'll have a good paying job that I can pay them off then". In theory, good idea... But it never works out that way does it?

When we got married, we had shamefully combined debt to a staggering $18k. And we had been suffering ever since. After taking control of our lives and credit, we cut all of them up and started doing without and paying them off. We didn't do completely without, we even managed to buy a home, but we were smart not to make the mistake and over-do it. We live within our means, so that we can still go to movies, out to dinner, baseball games, weekend trips, and even big vacations. We still use no credit cards unless it's just to keep the credit moving for things like dinner. I had a hard time believing that I could spend life without one... Don't you need one for somethings? The answer is plainly, NO. I can reserve hotels, I can rent cars, I can buy plane tickets, I can do anything with my debit card that I could with a credit card and know that it's paid for. Now, things are obviously better, we've turned what we used to pay every month in debt to a car payment for me. Now we are looking to sell the first home and move up into something fancy. We do have credit cards now, but only two. We use them responsibly and there's no debt. It can be done...

Now that the short term items, that can easily be turned into long term are figured out... It's time to start investing and taking responsiblity for things later...