Financial GPA

Last week I talked with a couple that didn't understand how they got in such a bad financial situation 🤦🏻‍♂️

They make a combined income of $150,000 / year and they filed for bankruptcy

This is how it happened:

They are both college graduates that had a combination of over $100k in student loans👎( degrees were unrelated to their respective careers)

They both financed two new cars for a total of $60k 📉

Had credit card debt of about $30k⛱️

Medical bills of $10k 💊

Owed income taxes of $20k 🤷🏻‍♂️

Then they were told by a bank that they could qualify for a house and they got it for $475,000 🏡

Let's recap

Income : $150,000
Savings: $5,000
Retirement: $10,000

Debt:
$100,000 Student Debt
$60,000 Car Debt
$30,000 Credit Card Debt
$10,000 Medical Debt
$20,000 Tax Debt
$475,000 Mortgage Debt

Total Debt : $695,000

I don't understand how they even qualified for this mortgage but that is beside the point. What they didn't do is pay attention to how much debt had added up over a span of 8 years

They are in the mid-late thirties and at risk of losing everything they worked so hard to get. These are not bad people with an exagerated lifestyle. They just didn't pay attention

Oh I forgot to mention they also have two kids under the age of 10. This may seem uncommon but it is not. This family will struggle for the next 5 years to try and keep some things they simply can't afford.

I share this story so you can pay attention to your money. Don't let this happen to you or your family. If you don't understand something - ask for help. This couple has now caused a huge strain on their relationship that could lead to divorce. If you find yourself struggling with money don't be ashamed to ask for help.

There are two way we make decisions about money:

1️⃣ Logical

2️⃣ Emotional

The majority of your decisions in life will be emotional. From the things you eat to the clothes you buy and what you drive it will involve some form of emotional decision making

Chances are the food you eat as an adult will be similar to the food you had growing up. The brands you buy at the store for almost everything will have emotions attached to it because that is what you saw your parents get

Understanding how you make decisions is critical to taking control of your financial future

What's something that you do now that you got from growing up as a kid?

leave a comment 👇👇

I believe that the way you were raised plays a major role in the person you become

As kids we are conditioned to be one of two people
1️⃣ Optimistic
2️⃣ Pessimistic

What you think about yourself is a result of the environment you grew up in 🤷🏻‍♂️

Some people look at their upbringing and replicate it and others look at their life and change it 👨🏻‍💼

If you are unhappy in any area of your life start to pay attention to the way you think

one simple shift can create a major change in your life

Are you aware of your thinking pattern? How has it changed over the years?

Leave a comment 👇 and share this with someone you care about 💙