The Rule of 2


In a world where spending money has become easier than ever, I ask you the question, what rules, mantras or guidelines do you have in place to ensure you don’t end up with a debt disaster?

Personally, I told myself to stick to the rule of two. I told myself the maximum number of debts I could manage was at most two. Anything more than two debts and I would be living above my means or living in a state of constant worry.

Well, at least I thought I stuck to this rule. Until more recently, when I took a closer look at my relationship with money. I now realise, I had a lot more than two debts at any given time. From the age I could apply for debt, I’ve turned to debt solutions for my wants and needs. In hindsight, I don’t regret this. It has helped form a good credit score.

At the mere age of 22, I have dealt with the following debts:

  • 1x Personal Loan for Surgery
  • 1x Payment Plan for Orthodontist
  • 1x Personal Loan for a Car
  • 1x Mortgage
  • 1x Credit Card
  • ZipPay
  • AfterPay
  • HECS Debt

Some of these I have paid, some I have chosen to ignore and some are still outstanding. I have chosen not to disclose any real figures on this blog, as this leaves me exposed. I am happy to provide percentages at any point, if this helps you on your journey.

In the evolutionary world of AfterPay and ZipPay, it’s no wonder my generation struggles with their relationship with money. There’s no ‘work hard and reward yourself within your means’. It’s now a ‘reward yourself and work it out later’ mentality.

I’m planning to post of a list of my notable financial successes.This isn’t to brag, I assure you. I feel it’s important to justify as to why I try to help others with their personal finances via blog posts, or at the very least provide you into an insight into my personal finance situation.

I hope you enjoyed this post, you can consider it to be an introduction to my finances. As always, happy to answer any questions or queries via comment or email. This blog is that of an open book (or webpage in this case I suppose). I’d love to hear what you do and don’t consider to be debt, and your why or why not in the comments?

Baby Sloth x

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