Financial Traps

One of the primary mistakes many people make is simply increasing their obligations far too much, far too soon. This sets the stage for the “golden handcuffs” becoming part of the picture from early on.

I’m reminded of a high school buddy of mine, guy named Jim. Like so many young people muddling through all the sexual superstitions, fears, and related hobgoblins that our Puritanical society insists on maintaining, he and his girlfriend got caught: she became pregnant during their last year of high school.

They got married and had a lovely daughter. But their fates were sealed in terms of any real experimentation or career advancement was concerned – they had to provide a household and a secure environment for their daughter.

To their credit, Jim and his wife have done just that. But Jim never had the chance to explore some of the career options he had hoped for as a young man. I didn’t know his wife very well so I can’t say if this is true for her but I do recall her taking some kind of job that she didn’t like very much to help with the bills. What an all-too-common picture this is.

It’s not just those who get “caught,” however. Social, religious, and family pressures result in many young people starting families long before they establish any real financial security; once the obligations are in place they are likely to be just as “stuck” as my buddy Jim and his wife.

Beyond the “family trap,” there are other ways for a young person to get into financial hot water, thereby reducing flexibility for career growth and experimentation. Here are a few:

• Student loans. Start out “in the hole.” Alternative: wealthy parents and/or part-time work.
• Expensive tastes, regardless of income. Our culture encourages this, of course. Being moderate in our consumption is perceived as somehow unpatriotic … patent nonsense, but there it is just the same.
• Social pressure to “keep up” with friends, neighbors, etc. More crap from our dysfunctional society, but the pressures can be very real.

So, you may wind up being a great consumer – but it can cost you a lot in terms of your peace of mind and overall happiness with your work.