Today is my birthday. And on my birthday, I like to take some time to reflect not only on the past year but also on the path (progression, track, whatever) my life has taken. I think a little introspection is good for the soul and it’s an exercise I highly recommend.

For my self-reflective exercise this year, I chose to focus on some of the good financial decisions I’ve made over the years that have enabled me to leave full-time employment, conquer my fear of self-employment (well, sort of conquer. I’ve at least showed up to the battle), and get to a place where, although my income is pretty low, my happiness quotient is higher than it’s been in a long, long time.

Worked crappy jobs

I think it’s character building to work a crappy job or two. And I’ve certainly had my share, particularly in college when I worked a video store (yes, I’m old enough to have actually held a job in a video store), a daycare, an afterschool program and one painful, horrible month over one summer at a gadgets store in the mall. Let’s not forget the $100 paycheck job I had in high school, either. Although the pay was low, I learned so much and developed so many soft skills (showing up on time, getting along with co-workers, customer service, how to quit politely, stuff like that) that have been so valuable to me in my adult life.

Those crappy jobs also taught me the value of working hard to earn money and the joy I felt when I got those paychecks, knowing that I earned them, made me feel pretty damn accomplished.

Learned to budget

While on the surface, it looks like I learned how to live on a budget in college and grad school, the credit card debt I accumulated tells another story. However, in my post-graduate school years (okay, fine. Post-20s if we’re going to be really specific), I took it upon myself to really learn how to budget. Without the help of credit cards when the cash from my paycheck couldn’t cover what I wanted. When I learned to budget, I actually took the money that I earned, along with my husband’s income, and made our expenses match that money. With some leftover, too!

Living on a budget has made me more comfortable, financially, than I’ve ever been.

Paid of my credit card debt

Being consumer debt free is the best thing I’ve ever done for my finances. Without a doubt. I don’t think I even need to explain why.

Went to graduate school

When I was on the verge of graduating college, I genuinely didn’t know what I wanted to do or where I wanted to do it. So I made a decision that I would apply to grad school, but only one program. I told myself that if I got in, with a scholarship and a job, I would go. And I did. With both criteria I wanted. So I went. And I am incredibly glad that I did. Although I didn’t necessarily work in the field I have my Master’s in (Urban Affairs and Public Policy. I know, I know shit! Surprising, right?), the skills that I learned not only made me a more useful employee in a number of my post-graduate jobs (including founding and running Bloggers Helping Bloggers) but I was also able to command a higher salary. And my MA is the reason I have my part-time teaching job.

Graduating with no student loan debt, combined with the extra earnings post-school, has had a significant impact on my overall financial situation.

This post was originally intended to discuss my money regrets. I do have some of those, like getting into credit card debt in the first place, taking a government job over a job at consulting firm upon graduation from grad school (I’ve been debating this as a post. What do you all think?), not studying abroad in either graduate school or undergraduate, and buying a house way too quickly after getting married. I’m sure there’s a few more that my old age is making me forget.

But the more I thought about it, the more I realized that all of those decisions shaped the person I am now. And if that’s the case, are they really regrets? I think that’s up for debate. For now, though, we can focus on all the good choices I’ve made.

Because it’s my birthday and I say so.

 

Dear High School Students,

It’s me again. Jana, your friendly neighborhood personal finance blogger. I know you’re probably rolling your eyes at me (which is fine. I spent a good deal of my teenage years rolling my eyes at adults) but trust me, you’re going to want to pay attention to what I have to say. Because when I’m done, I will hopefully save you thousands of dollars as well of years of paying down debt (which is not fine. Paying down debt sucks more than first period math).

Remember how we talked about money skills you need to acquire and practice before you leave home to go to college? Those still stand and I still recommend them. But I also want to talk to you about a few things that will creep into your life and, if you’re not careful, can get very, very expensive. And not expensive in a good, iPad kind of way. No, this is expensive in a “I finally have a job and now all of my paycheck is going towards these things and I have no money left to do what I want so I’ll use credit cards again” kind of way.

What am I talking about? Alright, I’ll stop rambling and get to it:

Credit cards. Credit cards are a funny thing. People either love them or hate them; there’s very little indifference. For those who are in the love them camp, they feel that they are a great tool for using your money. For those that hate them, they feel that credit cards are evil and do nothing but cause debt. Here’s the thing: both sides are right. Credit cards do both. The difference is in how you choose to use them. If you get a credit card (and before you do so, talk to your parents or an adult you respect), read the terms of the offer very, very carefully. More specifically, scrutinize the interest rates, any yearly fees, late payment penalties, and how long it takes a payment to process. Also remember this: credit cards are not free money, although it may feel like it. If you use that card to pay for something, you will have to pay it back. If you don’t have a job or any way to pay it off, don’t get a card. Or, if you really feel like you need to have one in your wallet, get a very small limit and don’t use the damn thing. Using a credit card when you have no means to pay it back is a slippery slope that can cause more damage to your finances than you can imagine at this moment. Please trust me on that one.

Student loans. I will be the first to admit that I’m not the most appropriate person to give advice on this subject.  But I’m going to do it anyway. Really, I just caution against taking out more than you need. I know many students see their loans not only as tuition assistance but as a way to afford room and board and have living money (my husband did this. As did a number of our friends), and while that’s your choice, I don’t think it’s the smartest choice. Like credit cards, you’re going to have to pay most, if not all, of that money back and having a high total will have a significant impact on your finances later on. If you can, try to find ways to supplement your loans: get a part-time job on or off campus; try a community college first and then transfer to a 4 year school (my husband did this, too); look into scholarships and grants (if you live in one of these 15 states, check out the Southern Regional Education Board); or, if you need to, attend school part-time. If none of those are possible, make sure you have a fantastic repayment plan for your loans (and explore all possible options) and you know exactly what you are getting yourself into.

Car loans. After spending your college years driving either a piece of crap car or not having a car at all, you’re going to want to buy a car of your very own. And you’re going to want it to be new and fancy and shiny and impressive. There’s nothing inherently wrong with all of those wants. The problem is that they cost a shit load of money. And your paycheck might not be able to keep up with the payments and the insurance costs (and the maintenance costs. And gas. And anything else). You might also need a co-signer for the car if your income isn’t enough to afford the car you want (even if it’s not the most expensive car in the world. My little sister bought a Toyota and needed a co-signer because her income was low); if you default on those payments, it’ll fall back on your co-signer and that’s not fair. So please, I implore you to pick a practical, new-to-you car that’ll be easy to pay off and, when you’re driving that car into the ground, you can set aside money for your dream car. Oh, right. If your friends make fun of you for your car, get rid of them as friends. Real friends don’t give a shit what kind of car you drive.

So that’s what I have for your today. I promise not to lecture you any more on your finances. I think I’ve given you enough to think about and consider. Now, please understand I’m not forcing you to do anything I’m talking about. How you choose to approach your money is your business. But before you make some expensive choices, think about it carefully. Because there’s a lot of life to live after you graduate and you don’t want your money tied up in debt.

Love,

Jana

P.S. Readers, if you have any advice to give to high school students, please leave it in the comments.