I was talking to a friend who kept telling me that she didn’t have enough time for all she wanted to do: translation work, teaching, preparing curriculum, researching for PhD program and running a business of multiple AirBnb listings. Many of us have the same issue: day time job, workout, cooking, eating, socializing, reading, side projects, family, friends, 8 hours of sleep, transportation, you name it.
The 24 hour allocation every day isn’t going to change. The more we want to do and complete, the more we feel that there isn’t enough time. If time isn’t going to expand, I believe that the solution to this issue is to want less. If we decrease the number of activities, we’ll have more free time on hand.
The concept can be applied to personal finance as well. I came across a report on how Americans incur more debt for weddings
The Washington Post reports that these companies—amongst them Prosper, Upstart, and Earnest—are offering five-figure-plus loans with up to 30% interest. Unlike other types of personal loans (which, in 2019, typically have interest rates between 5% and 36%, according to personal finance site Value Penguin), these loans are specifically for brides and grooms to help pay for their special day.
According to the Post, these lenders say that, already in 2019, they have issued up to four times as many “wedding loans” as they did last year for couples paying for their own weddings.
What’s driving this trend? It seems to be the confluence of several different factors. First, the majority of those taking out wedding loans are millennials, a demographic that is under substantially more financial pressure than previous generations. Millennials are spending more money on things like education (or, rather, paying off student debt), healthcare, and rent; their average net worth is $8,000, 34% less than Americans of the same age 20 years ago. That leaves a lot less money to spend on extravagant nuptials.
On top of that, the average cost of a wedding is rapidly rising. According the Brides‘ 2018 American Wedding Study, a wedding in 2017 cost around $27,000. A year later, in 2018, that number nearly doubled to $44,000.
Adding to that cost is the so-called “wedding tax,” the premium that party vendors—such as photographers, caterers, and florists—place on a product or service when its meant for a wedding.Young Americans are racking up debt for Instagrammable weddings
A colleague of mine once shared his financial concerns about his upcoming baby and wedding. Apparently, he would have to care about paying for the wedding, the baby’s birth, a new car as his current one isn’t friendly to babies and day care. All of them are significant expenses. In many cases, many of us have only one income and a lot more expenses. As the number of expenses increase, the disposable income left shrinks and debts can rack up. Either we have to grow more income sources or expenses have to be cut down so that there is more free money in case of emergencies and more freedom. Obviously, having a secondary or third income besides a day job is more difficult than eliminating unnecessary expenses. So again, to have more, we should want less