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Not at the Dinner Table / Re: Student loan debt: What's the deal with that?
« on: January 05, 2013, 06:05:06 PM »
I'm trying to take a no-debt approach to college. Call me crazy, but it's been working well, so far.
People always try to tell me that loans, debt, and credit cards are just an American necessity: "EVERYONE HAS DEBT AND PAYS PAYMENTS; THAT'S HOW LIFE WORKS." I disagree. I don't find that you need a loan for virtually anything except a mortgage for a house (unless you are able to save up for one while in a smaller home/apartment, which is entirely possible). I have a vehicle that I paid cash for.... aaaand that's all I really need. I don't see anything else that I'd need a loan for. I have a small fund for emergencies set off to the side that I saved up for during high school, as well. I have a monthly budget which describes my expenses for the month, my emergency money is off to the side just in case, and I have a small budget for entertainment (which I don't dip into often). I feel like managing your money is really about just watching it closely and being able to resist impulse buying.
I looked at some old paystubs for 2011 and thought, "Wow, where the hell did my money go?" I'd made thousands and realized I had jack [dukar] to show for it. Now that I've been budgeting every month for a long time and telling myself "no," it feels like I have a ton of money even though I make the same amount. Back then, I'd see something or go get fast food and be like, "Ehhhhhhhh I know I have enough on my debit card," then I'd turn around when I got my statement and realize how much freaking money I spent on completely unnecessary stuff.
I am currently able to attend community college while working a near-minimum wage job while also paying bills. I set up a payment plan where I'm paying this semester's 1,500 dollar tuition off over four months. Not a loan, mind you. Next year I'll hopefully be attending the University of Texas in Austin. Tuition is around 4,800 dollars per semester. That's a big jump from the $1,500-$2,200 tuition at the community college I attend (three to four classes). I'm about to apply for Pell grants for the Fall 2013/Spring 2014 school year. Hopefully, I'll be able to get some help that way. I understand that Pell grants are a leg-up... "free" money from the government if you qualify, if you will, and I am willing to accept it right now even though my belief is that if you want something, you must earn it yourself. I have vowed that any grants or whatever I may receive over my college years will be paid back out of my pocket in the form of donations and other types of giving once I am in a better financial position to do so because I would like to balance out what amount taxpayers across the country have graciously, though probably unintentionally, provided for me.
In conclusion, I don't want credit cards, and I'm trying everything I can to not get a loan. The only thing that I would get a loan for (except a house) would be school. I doubt that'll happen, and I sure as hell don't want to graduate college only to turn around and owe people astronomical amounts of money. Life isn't about earning an income just to do an about-face and give it to a bank or whoever for crap that you don't really own until it's paid off. I also don't like the idea of interest, especially when I see broke friends around me that are struggling to pay off stupid payday loans because they can only cover the interest part of it and had no money to fix their vehicle when it broke down. I feel bad for people who have, say, 50,000 dollars in student loans, a 23,000 dollar car note, an enormous mortgage payment, and six maxed out credit cards.
People always try to tell me that loans, debt, and credit cards are just an American necessity: "EVERYONE HAS DEBT AND PAYS PAYMENTS; THAT'S HOW LIFE WORKS." I disagree. I don't find that you need a loan for virtually anything except a mortgage for a house (unless you are able to save up for one while in a smaller home/apartment, which is entirely possible). I have a vehicle that I paid cash for.... aaaand that's all I really need. I don't see anything else that I'd need a loan for. I have a small fund for emergencies set off to the side that I saved up for during high school, as well. I have a monthly budget which describes my expenses for the month, my emergency money is off to the side just in case, and I have a small budget for entertainment (which I don't dip into often). I feel like managing your money is really about just watching it closely and being able to resist impulse buying.
I looked at some old paystubs for 2011 and thought, "Wow, where the hell did my money go?" I'd made thousands and realized I had jack [dukar] to show for it. Now that I've been budgeting every month for a long time and telling myself "no," it feels like I have a ton of money even though I make the same amount. Back then, I'd see something or go get fast food and be like, "Ehhhhhhhh I know I have enough on my debit card," then I'd turn around when I got my statement and realize how much freaking money I spent on completely unnecessary stuff.
I am currently able to attend community college while working a near-minimum wage job while also paying bills. I set up a payment plan where I'm paying this semester's 1,500 dollar tuition off over four months. Not a loan, mind you. Next year I'll hopefully be attending the University of Texas in Austin. Tuition is around 4,800 dollars per semester. That's a big jump from the $1,500-$2,200 tuition at the community college I attend (three to four classes). I'm about to apply for Pell grants for the Fall 2013/Spring 2014 school year. Hopefully, I'll be able to get some help that way. I understand that Pell grants are a leg-up... "free" money from the government if you qualify, if you will, and I am willing to accept it right now even though my belief is that if you want something, you must earn it yourself. I have vowed that any grants or whatever I may receive over my college years will be paid back out of my pocket in the form of donations and other types of giving once I am in a better financial position to do so because I would like to balance out what amount taxpayers across the country have graciously, though probably unintentionally, provided for me.
In conclusion, I don't want credit cards, and I'm trying everything I can to not get a loan. The only thing that I would get a loan for (except a house) would be school. I doubt that'll happen, and I sure as hell don't want to graduate college only to turn around and owe people astronomical amounts of money. Life isn't about earning an income just to do an about-face and give it to a bank or whoever for crap that you don't really own until it's paid off. I also don't like the idea of interest, especially when I see broke friends around me that are struggling to pay off stupid payday loans because they can only cover the interest part of it and had no money to fix their vehicle when it broke down. I feel bad for people who have, say, 50,000 dollars in student loans, a 23,000 dollar car note, an enormous mortgage payment, and six maxed out credit cards.