The Middle Years. . . .

Click here for my post on the Early Years. . . .

I returned to sunny California from graduate school on the East Coast in 1998, still blissfully ignorant about the true state of my finances. I decided to try my hand at a marketing position at one of the new internet start-ups that dotted the Bay Area. Living with family in Marin County (that was nice!) while attempting to find a ‘room’ (aka closet) to rent in San Francisco on my $25,000 a year salary (not so nice!), I could have used this rent-free period of about three months to save some money. Did I do this? Of course not! I bought a car! Isn’t that what every new graduate with $50,000 in debt does?

In my defense, it was not a new car, by any means, and it wasn’t sexy or fast (it was a tiny Honda Civic, over five years old at the time). As humble as it was, I still had to finance it and make a monthly payment. In addition to my credit card payments, and the soon-to-be $600 a month student loan payments. Did I mention I consolidated my student loans at the low, low rate of 8.25%?

As it became clear that I wasn’t going to find a room to rent in San Francisco without some major cash in hand, an office at the university I attended for my undergraduate degree called---they had a job opening, and it was actually related to my graduate degree!

In desperation I returned to my hometown, and took the university job. Slightly better pay and excellent benefits (including an actual pension) made me feel like my ship had come in. Why, with all the extra money I’d be making, I felt comfortable enough to sign a lease on an expensive apartment, and bought some new furniture and clothing. Somehow forgetting about the car payment, the credit card payments, and the looming student loan payments. . . .

I’m amazed when I read blogs by people in their 20’s, who actually GET the fact that saving is a good thing. That contributing to a 401K (in my case, a 403b) is a GREAT thing. That paying off credit card debt is a guaranteed investment. None of these concepts even entered my mind.

I kick myself for not starting earlier, for not being ‘smarter’. Then I remember that at least I get it NOW. Yes, it’s 20 years later than I would have preferred (I’m 38 now). Yes, I could probably retire in a few years had I started saving when I was 18. But I didn’t. I’m grateful that the stars finally aligned at the right time in exactly the right configuration for the light bulb to go on over my head.

Tomorrow, I’ll write about where I am now, financially, and more importantly, where I’m headed!