To be in Debt or Not to be That is The Question!

Any which way you look at it, debt is the proverbial elephant in the room when it comes to our personal finances. I like to think that not all debt is equal. Generally, consumer debt is considered "bad debt"; you know, the stuff we rack up on our credit cards every time we time we pull the trigger on that impulse buy. The main reason for this is the insanely high interest rates that can be north of 20%. Sure it seems like free money at first but when the interest starts compounding, it begins to paint an ugly picture. Minimizing credit card debt is essential for having financial stability and it gives you peace of mind. On the other side of the coin there's mortgage debt which is often looked at as "good debt" simply because the "asset" or home will be paid off eventually (and hopefully will be worth more down the road). This is a generalization though, if you take on too much mortgage debt and are always strapped for cash, things might get a little messy when "life decides to happen." A lack of cash means, credit/debt will be your safety net, a very expensive net but a safety net nonetheless. Well, that's just my little take on the whole good debt/ bad debt conversation. Like it or not, we're all mostly likely going to take on debt in some shape or form but working diligently to reduce the debt is key.

Quarter Life Crisis

As cliche as it sounds, time really does fly! My 25th birthday is fast approaching and I think I'm having a quarter life crisis. Don't get me wrong, I'm grateful for the experiences that I have had and the things that I current have but where to from here? I think the source of the problem is when someone asks me "where do you see yourself in 5 years" and I'm stuck looking at them like a deer in the headlights. To be honest,I have no idea what I'm going to eat for breakfast tomorrow, some forecasting my life events 5 years out is a little bit of a stretch. But one thing is for sure, I'm going to focus and take action to slowly but surely become "Nouvea Riche!"