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#1
According to personal finance expert Orford, a healthy relationship with your finances means spending less than you earn while investing the rest of your money. "The sooner we live by this simple rule, the better off we are in the long run!" he told Bored Panda in an email.
He shared some practical advice about how someone who's deeply in debt due to their bad decisions can get out of it. "Single mistakes happen. Life events, bad decisions, or perhaps 'kicking the can' can all lead to someone being deeply in debt. Luckily, no matter how bad the situation is, there's almost always a way out," he said.
"It starts with accepting that you have this debt, owning the fact you'll sort it out on your own, and then coming up with a solution to pay it off. A solution might be getting help, restructuring the debt (i.e. through a consolidation loan) or bankruptcy," Orford explained.
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#3
Whatever the individual case might be, getting out of debt will mean that you'll have to start spending less than you earn. "Easier said than done, right? Well, consider this: to have more money at the end of the month, we either need to increase income, or reduce expenses."
The expert said that he prefers to start by reducing expenses. First, you'll need to create a list of all of your expenses from the last month, or the past three months, ideally. "From the list, it should be very clear what can be cut," Orford said.
"Then, look at ways to increase income. That could be creating a side hustle, asking for a raise, or changing jobs. Once you've done both, the bottom line should be significantly improved, and a surplus of income should be available for you to pay down debt."
As per The Guardian, credit card debt reached $1.17 trillion (yes, ‘trillion’ with a ‘t’) in the United States in the third quarter of 2024. This is up from $770 billion back in the first quarter of 2021. Living with debt can be incredibly stressful.
23% of Americans who earn less than $25k per year do not have a bank account. Meanwhile, 46% of Americans earning between $50k and $99.9k had a credit card balance. Low-income US citizens were more likely to use ‘buy now, pay later,’ payday, or pawn shop loans with average annual interest rates of payday loans at a mind-boggling 400%.
#4
In the end it worked out, apart from loving the flight training and living on the airport I also met my now wife. So the way I see it is it cost $100k to meet my wife who is now the guiding light in my life.
#5
I was only ever paid back $200, our relationship ended a few months after the car was purchased, I nearly ended up homeless, I had to put off college for a few years, and I ended up having to get a restraining order against him. It's been nearly 17 years and I still regret every second of that whole relationship. Don't ever let relationships sabotage your security and independence...and don't be stupid with your money.
#6
Research from Harvard shows that positive relationships keep you happy, healthy, and living longer. When you consistently invest time and effort in strengthening the bonds you have with the people you care about (avoid anyone who drains you!), you feel invigorated. And, at the end of the day, it’s your family and friends who truly matter the most in life.
That being said, even though your so-called ‘social fitness’ probably should be a priority, you can’t ignore other aspects of your life. Namely, your physical health and finances. A life full of quality relationships is amazing. But at the end of the day, you still need to put food on the table, keep a roof above your and your family’s heads, and keep the lights on. And you won’t get much of anything done if you’re constantly ill, out of breath, and lethargic because you’ve neglected your fitness and diet.
The simple fact is that so long as you keep your spending in check, a good income, decent savings, and steady investments give you more space to do what you want. More money means better food, education, medical treatment, and more free time. As well as a safety net in case of emergency.
According to Robert Waldinger and Marc Schulz, the authors of ‘The Good Life,’ money won’t buy you happiness, and people with more prestigious jobs and money weren’t happier in their lives. However, money is still a tool that can give you security, safety, and a “sense of control,” Schulz says.
#7
What did I do with that money? He said I should buy a house, it's enough for a down payment and interest rates were really low at the time. Instead I bought my dream car (a 1970 challenger someone had thrown a 440 and T56 transmission into). Don't get me wrong, I love that car, but houses then literally cost half what they do now and I still kick myself every time I think about it.
#9
I also grew up in a religious cult that taught me I didn't need to save because Jesus was gonna be back by the time I was 30.
Meanwhile, The Guardian reports that a new study conducted at the Wharton School at the University of Pennsylvania found an increasingly positive association between money and happiness. As per Matt A. Killingsworth’s research, there was a larger happiness gap between wealthy and middle-income people than between middle-income and low-income ones.
According to Killingsworth, “A greater feeling of control over life can explain about 75% of the association between money and happiness. So I think a big part of what’s happening is that, when people have more money, they have more control over their lives. More freedom to live the life they want to live.”
However, he added that “Money alone—which we’re already pretty motivated to pursue—is just one small part of the overall equation for happiness.”
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What are the very worst financial decisions that you’ve made in life, dear Pandas? What lessons about money did you have to learn the hard way?
On the other hand, what do you personally think are the very best financial decisions you’ve made, whether intentionally or by accident?
We’d love to hear about your experiences. If you have a spare moment, share them in the comments!
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#14
I am now paying interest on my s***idal ideation.
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#16
I guess I learned. The next one we bought is only 100 years old.
#17
Don’t marry the wrong person.
#18
When we multiplied our payments times the number of months of the loan, we were horrified by how much that car was going to cost. This was made worse because she was a mathematician and I was an engineer.
We made double and triple payments to end the loan and swore to never again pay interest for anything. Except for a mortgage, we never have: no car loans, no credit card debt, no home equity loans, nothing.
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