Start Late Finish Rich Becoming Free From Debt
I suppose it’s been about 6-7 years since I bought Start Late Finish Rich by David Bach.
At that time to say I was struggling is an understatement.
I was recently divorced, living with my parents, and just about 50k in debt. Things were not good. My first business was dwindling down, my second attempt screwed my finances up royally, and I was forced to take a minimum wage job just to keep the payments current on my credit cards.
I had next to nothing to work with.
Why Not Just File For Bankruptcy?
Well I did consider it. I had called an attorney. They had sent me information. I was definitely thinking about it.
But in the end I didn’t.
I figured I borrowed all that money I’m going to pay it back.
But it was not easy at all. It took a good 6 years of working to get back above zero.
To be clear, I don’t think that I took “the moral high-ground” by not filing for bankruptcy. After all, it is a legal process designed to help people who have unmanageable debt situations.
However, in my case I felt that 50k was manageable.
Also, I felt that if I’m to actually get my financial life where I want it to be then 50k should be a fraction of what I need to be earning over a career.
So, I sucked it up and got to work.
From Negative to Positive
Wow. Looking back it’s hard to believe that things worked out.
I literally started by going to work at burger king as a 40 something. Granted I only stayed 2 days before I got another slightly higher paying job.
So, the second job paid around $10 an hour.
After that I got an upgrade to $11.50 an hour at my next job! Whoo, I was cooking now! It was a better job though. I was able to get a 401k account started that is now worth many times what I invested back then. I ended that job at $12.50
This is where I started the 2nd business and things went down hill fast. I’d made some progress at the last job. However it was quickly eaten up by the business and I found myself 50k in the hole.
So, back to job shopping.
I took temp jobs. I worked night shift. Then finally got another permanent job back at $11.50 an hour.
I treaded water for a year and a half there. Finally finding a job that pays $13.50.
I stayed there for about a month and a half. I’d applied for another job that started at $16.00 an hour just before I started and that came through. I’d applied twice before getting called.
This is where, after at least 3-5 years, things started turning around for me.
Start Late Finish Rich Breakthrough
What I didn’t know when I took the $16.00 an hour job was that there were progressive raise increases for the following 5 years. Plus 1! Also I didn’t know that I would be able to work a ton of overtime if I wanted to. Plus 2! It wasn’t so much that I wanted to work overtime just to work. I had debts to pay and was willing to work as much as necessary to pay them off. So work overtime I did.
I earned more in that first year than I do now being at the top of the wage scale for my position! Working 12 days in a row happened on several occasions throughout that year.
And on top of all that there were quarterly bonuses and a great benefits package.
The point I am trying to make is that this didn’t happen overnight. It certainly was not an easy road. I was beaten down, depressed at times, lonely, and angry at myself for causing the problem in the first place. This was especially true in the first few years.
Earning Enough Money Is One Problem
Well earning enough money is just the beginning. You then need to know how to manage it to simultaneously pay off your debt and build up wealth. That’s where the book comes in.
If all you do is earn more money then turn around and match it with increased spending, because after all “you’re making more,” then you’ll quickly find you are making no progress on paying down debt or saving for retirement.
You’ll be in the same boat with more cash flying out of your bank account.
So along with Start Late Finish Rich I also suggest reading “I Will Teach You To Be Rich” by Ramit Sethi.
While much of the information from the first edition is a bit out dated, particularly the deals available for opening checking accounts and credit cards, the concepts of automating your savings are very valid.
It does look like there is a second edition from 2019. Hopefully it has been revised to address the outdated information.
The “X” Factor?
Well, nothing is easy. Even with high intelligence and good information people can still make lousy choices. There’s a reason the “get rich quick” industry is so big. They know very well that people are extremely lazy when it comes to making changes in their lives.
That means that the “X” factor is actually you. It rest squarely on an individuals shoulders to make the changes necessary to improve one’s financial situation.
It starts with educating yourself. These 2 books are a great beginning. But don’t stop there. Research and find other verified leaders in the personal finance realm.