Debt

When I was 18 I moved out of my parents house and couldn't wait to get my first place.  It was a very plain jane ground floor apartment by Westmount, but I couldn't be happier.  I was so excited to move in my old crappy hand me down furniture.  I set up my cinder block bookshelves and put my "stereo" on it.  It was all sooo exciting.

I had an old car that I bought with money I earned from working part time at Agnew shoes.  It wasn't very fancy but it was mine. Once on my own I needed/wanted some new things like furniture, so just as most young people do I went to the Brick and got some with a don't pay a cent event.  I remember having good intentions of paying it off before the date the payments were due..but of course did not. 

As I went through my 20's I purchased a few other things here and there with credit.  I was never one to use credit cards much but I did get loans for various household items.  Over time I realized that it was better to put money away for things rather than use credit.  I started taking some of my money every month and having it directed to money market account (after tax fund).  It was only about $25 taken off my cheque each time but eventually it added up.  Now if the fridge went and a new one was needed I could dip into my fund and pay cash for it. 

Since then I have gotten into this habit for almost all things I purchase with the exception of the mortgage or a vehicle.  Once you get into the mode of saving first, buying later it becomes pretty easy.  Mind you as you get older you also should get to the point where you don't need to keep buying so much stuff.

Having said that, some people never get that message.  They keep spending and spending and spending.  I am not sure at what point they will be happy with what they have.  I believe there are many who just get a thrill out of acquiring stuff.  I see families with boats and quads and campers and bikes and, and, and.  You rarely see them using or enjoying what they have, they are just getting more stuff.  The "more" they get is purchased with credit.  Now money that you haven't even earned yet has been spoken for. 

In IT I work with people that make really good money but save none.  They tell me they will just work till they are 75.  First of all, who the hell wants to do that? Secondly, how do you know you will be healthy enough to work then even if you want to?  That's not a chance I want to take. 

I absolutely don't want to work forever and I don't want to have any debt as I get older.  We now just have our mortgage and we are very focused on paying that in the next 5 years.   Canadians are racking up record debts and we need to take some lessons from the United States.  Just because things are rosey at the moment (in Alberta) they may not always be and if you are in a precarious situation already, it will only get worse. 

We all need to do a better job living within our means and using cash rather than so much credit.