This week’s Friday Financial Foul Up will feature a submission by Christine from Money Funk. Christine has created a great community at her site where she discusses the process of eradicating over $85,000 in debt. She is active on twitter (@moneyfunk) and is a great asset to the PF blogosphere. I hope you enjoy her special Valentine’s Day (although not a happy V-Day) financial foul up.
If you would like to add your own financial foul up to this series, please contact me here.
I was in my early 20s and in love. The boy and I got an apartment, we both studied pre-med at the same college, and we were having the time of our life. It all seemed like a fairy tale relationship.
My boyfriend, the entrepreneur, also ran a bachelor party business. We lived the life of glitz; partying with friends, getting complimentary VIP status into clubs and movies, rode around in limousines. It was grand. We lived life as if we had endless money and status. Of course, “love” in my young adult life equated with “vulnerability”. Vulnerability meant I was living life with rose colored glasses on.
Where I Fouled Up
I was funding my pre-med schooling with government student loans. My school costs were low; I should have only borrowed what I needed to survive on. Instead I borrowed ALL that was available to me because the boy had me believing we needed it. As Whimpy would say, “I would gladly pay you Tuesday for a hamburger today”.
My financial part of the relationship started to spiral out of control. He talked me into paying for him to quit pre-med and transfer to a private vocational school to become a computer techie. The money started to be used for those lavish parties and new clothes. We bought new furniture and paid excess bills. Then the money ran out. And you know what? So did the boy.
In the end, I was left with a broken heart, an unfinished pre-med degree and $32,000 worth of student loans. To which, I am still paying to this day.
$32,000 @ 5.6% for 10 years = $348 payment/approx. $9,500 interest/payoff year 2020
What I Learned
Don’t let Love govern your financial decisions! If your gut tells you it is not right, believe it! I was unfortunate to fall for false sweet nothings and promises of future riches. But I learned a great lesson from this experience.
I learned that as a woman, it is vital to build my own financial foundation. That meant building a savings account of my own, establishing good credit in my name, and learning about other areas of personal finance. At this time, I might still be in a negative net worth, but because of the lessons learned from this experience I now have a plan in place to become financially sound. And I am okay with that.
Do you like this series? Check Out The Previous Foul Ups:
Foul Up #18 – Clayton (Just Good Financial Advice) – Trying to Get Rich Quick
Foul Up #17 – Craig (Budget Pulse) – Black Friday Purchase Becomes a Dust Collector
Foul Up #16 – Jesse (PF Firewall) – The Fine Print of Rental Properties
Foul Up #15 – Paul (Fiscal Geek) – Unsuccessfully Restoring American Muscle
Foul Up #14 – Mrs. Micah (Mrs. Micah – Finance For a Freelance Life) – How Getting Married Wrecked My Finances
Foul Up #13 – Evan (My Journey To Millions) – Speeding Up Payments on Loan Interest, Not Principal
Foul Up #12 – Elle (Couple Money) – Stretching Yourself to have a Comparable Car to Your Friends
Foul Up #11 – Revanche (A Gai Shan Life) – Sibling Bailouts Cost More than Just Money
Foul Up #10 – Brad (Enemy Of Debt) – There’s Nothing Interesting About Interest-Only Loans
Foul Up #9 – Jason (Redeeming Riches) – Buying a Car with a Balloon Payment at the End
Foul Up #8 – David (Money Under 30) – Being Too Eager to “Move Out” and “Move Up”
Foul Up #7 – Matt (Debt Free Adventure) – Upside Down and Paying The Price
Foul Up #6 – Brian (MyNextBuck) – Overdue Books Prevent Me From Renting an Apt
Foul Up #5 – Kelly Whalen (The Centsible Life) – Poorly Planned Vehicle Purchase Costs $24,000
Foul Up #4 – Stephanie (Poorer Than You) – Signed My Life Away at Age 17
Foul Up #3 – Deliver Away Debt – How I Wasted Over $10K and 11 Months
Foul Up #2 – Brian (MyNextBuck) – Quick Fixes to Weight Loss
Foul Up #1 – Brian (MyNextBuck) – How I Didn’t Earn $3000 in Free Money