Money might not buy you love, but it buys you everything else. And thankfully for my dad, he loves me more than money.
The story: I needed a new apartment. Not just because I was living in an overflowing bachelor apartment, but because I no longer had a boyfriend who’s house I could run to when my parents came to Toronto. Not to mention that’s where most of our relationship took place. But that’s a whole other story. I needed out, for space reasons and sanity reasons.
I went apartment hunting, and found the perfect place: one of the best areas in Toronto, three closets in my bedroom alone, minutes from a grocery store and subway. Much like when I shop for clothes, I NEEDED it. And I needed it NOW.
The power of budgeting: Putting your earnings vs your spending on paper. I recently moved, and although my parents contribute to one fourth of my rent every month, they also paid for my first and last, which meant that they would reduce the amount they give me every month until I had ‘paid’ them back. I thought I could handle paying for all the rent by myself for a few months, and still pay down my debt. I wanted to get the amount I owed them over and done with. I figured I could handle it, how bad could a few hundred dollars be?
Apparently it could be really bad. I put it all on paper and realized that a $400 increase in expenses per month was actually sending me further and further into debt; that I should have not tried to ‘get it over with’ and spread out the repayments.
It’s pretty typical Jenn behavior to try to get everything done in one fell swoop and then deal with whatever I’m left with once its over with. Bad way of dealing with it.
The realization: What I should have realized is that my dad is not charging me interest and therefore I should have no taken on such a huge repayment plan that effects the amount of money I can put towards my principle debt (on credit cards) each month.
The love: After talking to my dad, he offered to not only reduce the amount of repayment, but to halt the repayments for six months until I had knocked down some debt and therefore would be paying less interest.
The moral of the story: 1) (most important) PUT EARNINGS AND SPENDING ON PAPER.
2) Make interest free repayments slowly
3) Only repay what you can handle
And… Borrow from your parents. Sorry dad!