You can have it all, just not at the same time
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Thank you so much for writing about something I have always had an interest in, but neglected to put in the effort to learn: money. I am a single, 32 year old male, making more money then I ever thought I would. I have the job of my dreams, make over $100,000 a year, have a house, a truck, I thought everything was going great for me.
I also gambled, had two lines of credit maxed out, a credit card I was scared to use because I thought it was always maxed. I would go “out for drinks with friends” and found that a $200 night became the norm. I became fearful to check my online bank account, because I never knew how much money was in it. Every two weeks I watched my paycheck (large to me) come in Thursday night, and by Sunday, I would have $300-$400 dollars left. What was my warped mind thinking??? “How can I make it through the next two weeks with ONLY $400?”
Last Thursday was the breaking point. I placed a sports bet myself, and then placed another bet online for a friend. I pocketed the money, as he is a poor better and I thought he would never win. It was a $40 bet, that paid off $300. Well, I lost my bet, and was watching hockey at 12:30am, pleading that the underdog would win, and I wouldn’t have to pay my friend $300 bucks. I couldn’t sleep, and was angry, frustrated at what my life had become.
Friday, I woke up, and decided to change things. I took my own coffee to work. I then went online, and looked for a branch that had one of your books. I was lucky (or graced) to find your “Money Rules” book. I won’t lie, I also picked up a few others. I decided that until I could grasp my poor money management, I didn’t need to go out, drink, or spend any more money.
Gail, I cannot put the book down. Every time I find a point that I relate to (Money Moron comes to mind) I cannot help but laugh, and see how idiotic and childish I have been in my decision making.
Since Friday, I have taken a lunch every day to work (saved over $20), no coffee (another $5). I rode my bike to work yesterday (it snowed, but I need the exercise). I like the mind set your book has helped put me in. Rule 29 “you can have it all, just not at the same time” has really given me hope. I have a LONG list of wants, and I know with successful planning, I can achieve some of them.
Quick story: today I attended my bank, (I have read about mutual funds in the past, and know enough about them to explain them to my 10 year old nephew). I moved my RRSP from cash to a moderate risk mutual fund. (given my age/income, I can stand a few bad years for the chance of increased growth). I also had a second line of credit at another bank, and b/c of the lower interest rate/convenience, I asked on increase the line of credit at this bank, place the balance of credit line 2 here, and close it.
While I was applying for an increased line of credit, the “personal banking officer” asked me if I would like to insure the line of credit. (side note, due to my job as a civil servant, I am insured out my wazoo). She said in case of my death, the insurance I would pay to the bank would cover the cost of the loan. I told her “because of my job I am more then adequately insured”. She advised people always think this, but it is not necessarily true. She then asked me what would happen if my life insurance wasn’t enough. Well, after reading your book, I knew that if there is debt my estate cannot cover, the bank is SOL and cannot go after my family. I looked at the woman, smiled, and told her “I’m pretty sure your bank would cover the rest of the debt.” She had NO ANSWER.
Thank you again for changing my life. I know it’s only been five days, but I already know that next month, next year, and my future looks more promising. I cannot thank you enough for educating my and giving me hope.