Life on a Budget - Carl Creasman

In many respects, the greatest danger to the current generation of young adults (30-under) is the rising debt crisis. From 1980 to 2001, total US Consumer debt rose over 5 times, from $355 billion to $1.7 trillion. By 2007, that number rose to almost $2.5 trillion. Today we are still swimming in debt. Unless you learn how to manage your money, you will face the reality of drowning financially. Or, perhaps not as worse, but still a negative conclusion, you will find that you “never have enough” money even as you see your income rise.

More than 2 million Americans seek financial help each year with the average amount of debt over $40,000. Those who fail to deal with their financial crisis ultimately find themselves heading towards bankruptcy, which is a decision that carries long-term repercussions that harm your financial setting. Money also impacts your most important personal relationships. Multiple studies show that a leading indicator of marital problems leading to divorce is financial issues, including bringing debt to the marriage.

So, how can you better manage your money? By learning to live on a budget. Graduate school was the first time that I lived “on my own.” I knew nothing of budgeting, though I was aware of the dangers of debt. Nonetheless, I lived on a simple principle of hoping I ran out of month before I ran out of money. When I got engaged a few years later, I knew something had to give. Luckily for me, I was browsing through my local Christian bookstore when I stumbled upon financial expert Larry Burkett. His book Complete Financial Guide for Young Couples: A Lifetime Approach to Spending, Saving and Investing gave my bride and I a path to security. We immediately made plans to apply the principles of a budget. We are both convinced, 17 years later, that having that issue under control allowed us to have a more successful marriage. Today you can find other guides to help you from the wonderful website Get Rich Slowly to the powerful writings of Dave Ramsey.

By learning to live on a budget and manage your money, you prepare yourself to live within your means. This opens the door for you to then use your increased salary to grow even more wealth for yourself or your family. While we still have a relatively small income, we are blessed to have our needs easily met and we have no consumer debt at all. As we have increase, we can put money away for our children’s education, basic savings, retirement or any current needs, from new shoes to vacations. We never face the risk of debt. A budget is freeing and allows us to live with guidance and restraint. You too can experience this freedom.

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