I was talking to my wife the other day, who is a registered dietitian and the brains behind our marriage, about how many Nutella crapes and other delicious deserts I managed to eat during this past holiday season. She wasn’t as impressed as I was.
She later hit upon an interesting concept during this same conversation that made a lot of sense for my financial brain.
She was discussing how the average person gains weight. She explained,
“They gain ten pounds over the holidays. Followed by loosing eight after January 1st.
Next December, they again gain ten pounds. They make the same resolution and loose only eight. Now a net gain of four pounds over two years.
Over one or two years, it doesn’t make much of a difference. However, over 20 years that’s 40 pounds!”
I couldn’t help but think of the similarities between how people get into debt and how people gain weight.
Debt usually starts somewhere in your 20′s. You get your first credit card, with a small limit. You tell yourself you’re only going to put groceries on your card and pay it off each month.
However, at the end of the month, there is a small balance on there. Unfortunately, you don’t have the money to pay the entire card off.
The balance keeps growing little by little each month. There are a few times when you get motivation to finally pay if off, but life happens and you can never pay the entire balance.
Just like with the gaining weight, it takes a few years to actually see the magnitude of the problem you have on hand.
What began as a simple credit card with a small limit has sprung into three maxed out credit cards, student loan debt, and car payments all while you’re living paycheck to paycheck.
How To Stay Out of Debt
The answer is pretty simple if you want to overcome debt, don’t let yourself get into debt in the first place.
If you’re already in debt, realize the problem and promise to change things.
Do you agree or disagree?
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