Denial Can Be Expensive

My son’s teacher sat down next to me the other day and said something that still makes me cringe. She told me that her husband’s salary had declined significantly over the past three years. During that time, they didn’t want their teenage kids to know, so they continued living the lifestyle they were accustomed to. Both of their children play competitive sports, and in three years, their denial about their financial situation has resulted in a mountain of debt.

My heart hurt for her. It still does, not just because of their financial decline, but because they let something in their control get completely out of control. Please don’t let this happen to you!

As a parent, I am a firm believer that your kids should not have to deal with adult problems. That doesn’t mean you can’t be honest with them in a way that doesn’t make them worry. My son is eight years old. My husband is out of work. We are not struggling financially, but we also have cut back on things like eating out after church on Sundays and other small luxuries that add up over time. My son also has to limit his summer camp choices this year. If my husband gets a job soon, we may give him more options, but for now, the distance and cost of camps are big factors in determining whether or not he can go.

Even if you don’t have kids, or a spouse for that matter, you have to be honest with yourself about your financial situation. When your income decreases, so should your expenses. If you are using credit cards to buy things you know you can’t pay for any time soon, you are living beyond your means. If you are spending money on entertainment instead of paying your electric bill, you are living beyond your means. Stop now while you still have control over you money. Cut back on luxuries, even if it means seeing the matinee movie instead of the evening movie or stopping for coffee twice a week instead of every day. Shop around for cheaper auto insurance. Drink tap water instead of bottled water. Those small expenses will save you more than you think.

Last summer, my sister-in-law was complaining that she and my brother can’t afford to take a vacation with their kids. She was telling me this in the car while she was picking up her daily cup of ice coffee for $2.65. Yes. She even buys it on weekends. A year’s worth of coffee costs her $967.25, plus the cost of gas to drive back and forth every day. That’s her vacation, and she doesn’t see it.

If this sounds like you, don’t let denial steal your financial freedom. Be honest with yourself and your loved ones while you are still in control of you money. If you don’t, it will end up controlling you.