The dreaded specter of going broke is familiar to many young people. And where does it come from? Too much is bought on credit. We live in a "gotta-have-it society" and everyone likes to join in. Usually an apprentice wage or salary doesn't stretch far enough, but you want to be part of the crowd. Why not, when so many installment plans are on offer and going broke young is never far away? Most people don't learn from experience either, and promptly tie the next problem around their necks.

It'll all work out

The new phone, a car on a lease: that is where the trouble starts. Everyone else does it, so why should you get left behind? No, you don't want that, because showing off is in. And this is what the going-broke-young disaster looks like:

  • You click your way through countless online shops
  • Ordering on credit is quick
  • The vacation is paid off in installments
  • The furniture is bought on a payment plan
  • The car is conveniently leased
  • And in the end you own none of it

And nothing will work out. On the contrary, at a young age you have already piled up a mountain of debt. Mostly out of foolishness and inexperience, and because you like to go with the flow.

Going broke young

It can be done differently

Broke young and far from a normal life. Before you struggle with loans, installment plans and the interest on an overdraft, take a moment to reflect. Is all that luxury worth this mountain of debt? Your pay can't absorb it and so shortfalls are inevitable. In Grandma's day, a lot of money was tucked away in a sock and people put something aside for hard times. Today, loans and overdrafts are on offer. But these financial injections aren't helpful. Going broke young doesn't have to happen if you take the older generation as a role model. Saving for a rainy day doesn't come out of nowhere. That way you can do things differently and you certainly won't be an outsider. And you won't need a debt counselor.

A new path brings new prospects
Going broke young sounds really bad. If you want to afford something extra, pay for it with a side job. That way you keep a firm grip on your income and expenses and don't go off the rails so quickly. You can watch the others sink, and your own affairs are in order. You don't have to own everything to join the conversation; it is enough to listen to the others. And they have miscalculated by a mile, and going broke young is knocking at the door. New paths bring good prospects and set you free, without the bank and creditors breathing down your neck. Saving and living sensibly is the surest way to reach your goal.