Originally Posted by Henry17
When someone makes $800/week and they spend $1000/week where do they think that extra $200 is going to come from?
Originally Posted by Cmoneymaker9
spend 600 the next week.. which they end up not sticking to.
Yeah, that sounds like me. I'm probably not quite dumb, but I've managed to pile up a considerable bit of debt over the past few years. Mainly by spending too much during my later college years because I was too stubborn/proud to ask my parents for more money per month (which they could and would have provided in a heart beat) and had a credit card with a generous line on it - because I previously almost always paid it off on time before interest kicked in to hurt me.
My idea was that I'd be able to pay it off in a short time frame as soon as I start working. What I did not account for was that moving to different countries on a regular basis and therefore spending time on the side lines looking for a new job, waiting for visas to go through, paying relocation related costs, etc add up to a ton of money.
I finally got frustrated now after a few years of working, earning a decent salary, not spending lavishly, yet still being in debt - more or less at the same level as I've been when I got out of college. So, as stupid as these plans may look like for financial discplined people, for guys like me this is a decent way to force myself into an organized life style when it comes to finances. It just needs some hammering into my mind to set up and stick to a realistic budget.
It would be nice to have something or someone to blame for my debt (bad upbringing, or whatever) but it's the plain old classic lack of discipline in my case.
I also believe that especially for people like me, lacking in the discpline arena, psychological effects of having paid off one debt may have a far stronger impact than telling yourself repeatedly that you're paying it off in the financially better order.