Wednesday, March 24, 2010

What Did You Learn From This -- Part II

In 2008, I posted my original "What Did You Learn From This" post. Back then I'd loaned a friend money. But now I'm doing something bigger and more life-altering than helping someone with a couple hundred bucks. I'm buying a home.

When I started thinking about buying a place, it was all just theory. I kept thinking about how without my debt to worry about, I could do anything! When my agent started sending me some listings recently, I got all dewy eyed over some of the options. All I have to do, I thought, is to put all that I'd put toward the debt toward what I currently pay in rent to meet my mortgage. I could make it work!

Uh ... no. That's not how to do this. And that's when it dawned on me: What have I learned from the last couple of years?

Don't live beyond your means.

Sure, I'm going to have to pay more than I'm paying now, but since I was planning to find another apartment this year, I was going to have to do that anyway. But that doesn't mean I should be using all of what's currently going toward my debt. After all, I still want to be able to travel, buy new clothes. Oh -- and eat.

I got into financial trouble trying to effect a lifestyle I thought I should be living and to live like my friends. But that's like putting a Band-Aid on a broken bone: It just does not work.

So I'm dialing back my expectations. What I find may not be the place of my dreams. But it will be my place.

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