By this time next month I will be financially debt free again.
Two and a half years ago, I was flying high. I had a fat salary, some savings, no debt, all while being the sole provider in my relationship. My relationship had hit a bump in months prior, but we were heading in the right direction.
Two years later (right before my 30th birthday), I was living paycheck to paycheck, had basically “no” savings, and picked up over $10k in debt. And my relationship… it hit another bump or rather a brick wall this time.
What happened? I figured since I was no longer going to be the sole provider, I could afford some career risks. A friend (and mentor) cautioned me that if I was considering large purchases in the near future, it might not be wise. The next significant purchase was suppose to be a engagement ring. I figured the worst that could happen would be that I’d be out some money, and my life plans would be delayed by a year. Hey, it’s just money.
The gamble didn’t pay off, and I got complacent. Complacent with my career, and complacent with my relationship. And we never talked about either in the relationship. I remember ring shopping at one point. I was scared out of my mind. I had enough in the bank to afford many of the rings, but they weren’t what I wanted to give her. And knowing the trends of my personal finances (I’ve always kept a close eye on them), I knew it would basically wipe me out and (with an inconsistent cashflow) shortly thereafter it would have been difficult to cover the monthly expenses that I was responsible for. I never brought this up. I just somehow shrugged off the ring.
We did take a short vacation in the summer. I could spring for that, the risks were acceptable. But winter came and another trip was planned. Looking at my finances again, they were still trending downwards, and I could no longer risk the relatively small amount for the trip.
I don’t blame the failure of my relationship on my finances. But I can’t help but think how different my life would be if I didn’t take that gamble. I would have probably been able to buy the ring I wanted. I would have been able to go on the trip. I don’t question my decision. Because I still feel that it was the best decision based on the information I had, and my only downside should have just been a hit to my finances. Would I have regretted taking the chance or not taking the chance?
My finances obviously played no part in my complacency in the context of my relationship. I still did sweet things, but I did stop pushing the envelope. Those bold, sometimes embarrassing things I would do sometimes to charm/impress her? Fewer, and far less frequently.
Where am I now? In the last 6 months, my financial debts have almost been paid. I’ve built up a some savings. Financially, I’m not where I was 2.5 years ago. But once my debts have been paid, my savings should grow quicker.
The ring? Previously, I wasn’t an “active” saver. I just kept a close eye on finances, and generally spent less than I made, so I automatically saved money. However, it was slow and inconsistent. And when my cash flow dropped, saving became even slower and even more inconsistent. I remember asking a friend (who was a grad student at the time) how he managed to save up the money for his engagement ring. I understand now. I have to make it a priority (see the complacency thing above), and save “actively”. I’ve been able to save a lot more money in the last 6 months because I am paying myself first (by regularly transferring money into other savings accounts) and paying myself aggressively. Living “at home” helps too.
I also started picking up freelance contracts. I feel a little dirty, but when the shit hits the fan, you have to get your hands a little dirty sometimes. I could have started doing this earlier, but I didn’t and that was a mistake. Again, see the complacency thing. Overall, I’ll probably make an extra 20% this year from my personal projects and from freelancing. I won’t hit my previous salary, but I’ve only been freelancing for a couple of months. Would this have helped? I assume. Would this have changed things? I don’t know.
I guess part of the problem was that I was unable to balance the financial needs of living in the moment with the financial needs of the future. And both ended up suffering. I missed out on some of the moments, and I may have lost that future too. I now work on finding that balance. Though it’s hard for me to tell what the financial needs of my future are now because the future is murky. Hey, but I’ll have money when it hits me out of the fog.
So the lessons are:
- Don’t be complacent.
- Comunicate. Work as a team.
They seem obvious. They are obvious. I don’t know. I don’t know why I didn’t see it. Maybe it’s something you can’t be told and you have to learn for yourself. A truly, truly expensive lesson. Oh, what I would give to have a “do over” for the last couple of years. I’d be fine with just the last year even, when the problems came to head. I saw the symptoms early enough before the problems really bit me in the ass, but instead of communicating and fixing the causes, I let the symptoms get to me. Yes, I should have handled it differently.
What’s next? Pay off this toll/sentence/karmic debt on my relationship and get it all back on track. Maybe I’ll volunteer overseas or something.
There is no shame in failing. Only in quitting. And ultimately, you only fail when you quit.