I saw an interesting post on Facebook recently that made a lot of sense. It pointed out how warped some of our thinking is.
If you tell people ”I just graduated college with $100,000 in debt,” people celebrate.
Mention ”I just got married and spent $10,000+ for one day,” and people celebrate.
Share “I just got a loan for $400,000 to buy my first home,” and people celebrate.
Say “I just got a loan for $40,000 for a new car,” and people celebrate.
That’s $550,000 in total debt you just racked up, which is very common in our society. We all feel good about it because we are being celebrated for it, and these types of debts are “accepted.”
Now, tell those same people you spent a few dollars to start your own business, and see what they say; “Whoa, are you sure?” “What are you going to do if it doesn’t work?” “Umm… I don’t think those things really work.” “Do you think you can get your money back?” “I know someone who didn’t do well…”
Ever wonder why? There are a couple of dynamics going on here. First, very few people understand money and debt. They prefer to live in the moment, get instant satisfaction from their purchases, and never think about the long term consequences of debt. They go along with the crowd because it is easy and the crowd is made up of mostly idiots. Being perceived as successful because you live in a nice house and drive a nice car is more important than actually managing money properly to ensure a truly successful and secure future.
But the second dynamic is even sadder. Misery loves company.
Picture a bucket full of crabs with no lid. The crabs never escape the bucket. The moment a crab tries to get out of the bucket, the other crabs pull it back down.