Believe Me, There Are Upsides to Living on a Budget When Buried in Debt

Summary

The author describes a personal journey from compulsive shopping to a disciplined budgeting lifestyle necessitated by debt accumulation, leading to a simpler and more fulfilling life.

Abstract

The narrative begins with the author's confession of using shopping as a form of therapy during their time in England, where a strict budget limited their spending. Upon returning to Nigeria, the high cost of imported goods and non-returnable purchases curtailed this habit. Later, in North America, easy access to credit cards reignited their shopping habits, resulting in significant debt. The realization of the futility of paying only the minimum on credit cards, coupled with high-interest rates, prompted a lifestyle overhaul. The author adopted a minimalist approach to spending, focusing on essentials like rent, food, and debt repayment. This shift led to healthier food choices, reduced clutter, and a clearer understanding of financial priorities. Despite the constraints, the author finds value in the simplicity and clarity gained from living on a budget and intends to maintain these practices even after overcoming debt.

Opinions

Shopping was initially a source of joy and stress relief for the author but became a financial burden due to credit card debt.
The author views high-interest rates on credit cards as predatory, exacerbating the difficulty of paying off debt.
Living on a strict budget is presented as a necessary and ultimately beneficial adjustment when dealing with debt.
The author expresses a preference for whole foods over processed ones, both for health and budget reasons.
There is a sense of empowerment and satisfaction in simplifying one's life and prioritizing needs over wants.
The author intends to continue with the financial disciplines learned during this period, valuing their positive impact on well-being over the potential to revert to old spending habits with future income increases.

It’s a blessing in disguise.

Once upon a time, shopping was therapy for me. The thought of it alone lit me up. While studying in England, I was living on a very strict budget. However, whenever I felt depressed, I would wander off to the stores and either window shop or buy things on sale. Of course, where the money stopped, the shopping stopped.

Then I moved back to Nigeria, where things were quite different. First, for goods that were imported, their prices were very steep. Sellers were determined to match forex rates and cover the cost of shipping and haulage. That bulk ended on the customer’s table.

So there was more window shopping than actual shopping. If you bought an item and had second thoughts, the merchant would refuse your returned goods. That took away the joy of sentimental shopping.

A couple of years later, I found myself in North America. I resumed my shopping habits. Having credit cards more than enabled me. Shopping on demand became second nature until I found myself buried in debt.

I only had a wake-up call when I realized that paying far more than the monthly minimum payment was like pouring water into a basket. The interest rates were like bloodthirsty demons. They appeared unsatisfied unless you paid off your outstanding credit card balances.

And so, it became clear cut where my money had to go; rent, food, transport, and debt. I had little left for miscellaneous. Walking through the malls was no longer tempting. There were no funds to indulge in extra shopping, otherwise, I would risk homelessness.

With time, I froze credit card usage. Shops couldn’t tempt me with all their gimmicks; promotional emails, spending money on cashback deals, buying 2 for the price of 1, or earning points to spend later. I only bought what I needed. I had no choice.

For food, this became an upside cos instead of wasting my limited funds on processed foods, I bought whole foods, which most times were cheaper than their processed counterparts.

Automatically, I got rid of multiple-choice problems. Fund availability became the rate-determining factor. My shopping options narrowed. It became very clear-cut what I needed anytime I walked into a store. Of course, the clutter at home decreased.

I have become quite adept at figuring out the more affordable options for most things. Importantly, I have come to a place where my priorities are very clear to me. It’s actually made my life simpler.

I am sure my income would increase soon and I would be out of debt. These gains I have made, however, I do not intend to lose them. They have a very high feel-good metric and are worthwhile for life.