When David totalled up his credit card bills and realized that he owed $20,000, he knew it was time to seriously re-evaluate his lifestyle.
“I had
nothing to show for all that debt! It was years of just living h
igh on the hog
and spending money as if I were wealthy, when I was anything but.”
After what David describes as “a long and arduous process” of calling credit card companies for lower interest rates, making multiple monthly payments, rolling payments over once credit cards were paid off, and closing the accounts that he no longer needed, he defeated debt and survived to tell us about it.
“...being free of credit card debt is an amazing feeling, especially after carrying it around for so long,” David says. “I hate debt so much now that I even paid for my $18,000 car in cash. I didn’t want those monthly payments hanging over my head anymore.”
In November of 2006, David decided that he could bring a new perspective to the world of personal finance websites and started his own blog, My Two Dollars. With his new, more balanced take on living, he left his job in corporate America and is now a full time blogger with three sites: My Two Dollars, The Good Human, and Simple.Organized.Life.
My Two Dollars is an amazing resource for anyone who’s
in a situation like David was—buried in debt and not quite sure what to do
about it. His story is proof that it’s possible to crawl out from under debt
and walk away from the vicious spending and debt cycle. His posts, that include
everything from money saving tips for moving to pieces like, The Secrets of Living a Debt Free Life, are
to the point, enjoyable to read (which isn’t the case with every personal
finance blog) and the tips are practical, meaning readers can start to employ
them straight away.
From his blog, one can see that David doesn’t miss his previous lifestyle with the over-indulgence and sky-high credit. Instead, he describes paying back every last cent that he owed as a liberating experience. In his post, Don’t Let Debt Dictate Your Life, David says he was stuck living a life that he didn’t want to live, working at a job he hated, because he owed so much money. He let debt determine the course that his life was taking, and I’m sure millions of other people can understand exactly what he’s talking about.
Even in the last 20 to 30 years, our values and the way that we manage money have changed significantly. Gone are the days when credit was only used for big purchases like cars or to help pay for post-secondary education. Nowadays, people have lines of credit for everyday living expenses, they consolidate their credit with their mortgages and continue to spend. The mentality that bigger or more is better, even if we can’t afford it, has taken us over.
In light of the massive debt loads that individuals and nations are carrying right now, I asked David what he thinks it will take for people to realize that their spending, and consequently their debt, is dictating their lives too. His response: tough love.
“...I don’t think our behaviour is going to change much until we crash and burn. Sure, we make small adjustments here and there, and people try to save a few more dollars, but I truly believe the majority of people are just waiting for the return of the ‘good times’ we had before the market started tanking,” David says. “Access to cheap and easy credit, a ‘Keeping up with the Joneses’ mentality, and immediate gratification was the pinnacle of the run-up of the economy—and people want that back. That’s why I think we will only see permanent change if we completely bottom-out, sadly. But if that’s what it takes, then I am all for it, because we have to get back to a more sensible way of living.”
‘A sensible
way of living,’ as David describes it, is all about balance. His post, It’s Not What You Earn, It’s What You Spend,
may be an eye-opener for some who think that in order to get ahead in life you need
to work a high paying job even if it makes you miserable. David says this isn’t
true, and when he quit his Monday to Friday, nine to five job that he had
disliked for so long and started doing something that he loved, the transition
to living on about half of what he was making before wasn’t difficult. He could
live comfortably on less money because he had re-evaluated what was important
to him and stopped spending on “superfluous ‘stuff.’”
The popular notion that frugal people are deprived of fun and never spend a dime that they don’t have to is misleading. David, for example, says his more sensible way of living includes greater fiscal prudence, but he refuses to miss out on the fun things in life just because he’s no longer a wild spender or working for a big salary. His post, Be Frugal, But Don’t Be a Cheap Bastard, explains that balanced doesn’t mean cheap. It’s about spending wisely.
“While I don’t want to carry debt, I don’t want to miss out on living,” David explains. “I would rather spend money on experiences I can remember than on physical ‘stuff’ that doesn’t bring much return to my life. Someone I know was bragging about their new 47” flat-screen TV they just bought, but then a few days later was complaining about having to buy school supplies for their kid. Which is truly more important and a good use of your money—a new TV or items that help your child succeed in school? Seems a no-brainer, but people really have these debates with themselves.”
David hopes others will find My Two Dollars inspiring and that his story will motivate them to break out of the living-beyond-their-means cycle that’s dictating their lives.
“There truly is no greater feeling than not owing a dime to a credit card company! I carried that burden around for so long (since college graduation, really), I had no idea what it even felt like to be free of that debt load,” says David. “You can live without debt, save a little money, and be somewhat frugal yet still have a fulfilling life. With just some minor tweaks to your finances and some common sense, it’s quite possible to live a comfortable life without debt.”
Share this article...
