No Illness, No Debt: A Guide to Financial and Life Balance

The Burden of Debt

A classmate of mine once said that with debt on his back, he didn't dare to quit his job or even take a break. In the past, when he got tired or the company was being unreasonable with long hours and low pay, he'd just quit, jump to another job, and take some time off. He could go without work for months or even half a year. But once he had debt, that was no longer an option.

This morning, in a group chat, we talked about how many college students got involved in online loans back in the day. Generally speaking, college students aged 18 - 22 aren't really mature, unless there are special circumstances. They don't know much about society and the real world. This kind of knowledge isn't just about theories or what they see on the internet; it's about real - world experiences.

I was the same way. I didn't go through much in college and didn't understand a lot of things. My thoughts changed a lot between my college days and the first one or two years after graduation. That's because I had to start thinking about real - life things like making money and saving.

When you enter society, the first thing you need to think about is making enough to support yourself. Then comes saving money, thinking about your family, and planning for the future.

Reasons for Debt

1. Student Loans

Some students' families can't afford their college education, so they have to take out loans. They pay them back after they graduate and start working. This is actually a kind of investment. It's relatively stable, cost - effective, and the amount is usually controllable.

2. Consumption - related Debt

This is like falling into a trap. I've never actually seen it with my own eyes, and sometimes I can't really understand the psychology behind it. But if you think about it, when young people have immature or incomplete worldviews, they're easily influenced by their social circles. If everyone around them is doing something, they'll follow suit. Also, they tend to overestimate their future ability to pay back. They think they can definitely handle it and that they're just using the money in advance. This so - called over - consumption is a bit like taking on too much leverage when buying a house.

3. Unexpected Events

Things like getting sick, having to pay compensation, starting a business, making investments, or getting scammed can also lead to debt. Buying a house or a car, and getting into relationships or getting married can also be considered part of the consumption category.

Saving and Spending in Modern Times

Yesterday, I was chatting with a friend about saving and spending these days. It's hard to save money, but easy to spend it. The idea of living in the moment is popular. People either spend all they have or spend first and worry later. There's nothing wrong with this idea. After all, life is like an experience game. You never know what the future holds or when an accident might happen. And life is truly a journey; the most important thing is whether you're happy or not.

I really like the saying, "Everything should be done in moderation." Just like bathwater, it can't be 0 degrees or 100 degrees. You can't be too stingy with your money and not spend at all, or you'll miss out on a lot of experiences, and it might even affect your health and mood. But spending all your money at once isn't a good idea either, as it makes your financial situation very unstable.

Strategies for Financial Management

When it comes to increasing income and reducing expenses, the question is whether to focus on increasing income first or reducing expenses first. And which one is easier? This is a hot - button issue, especially in close relationships. Some people think we should focus on increasing income, while others think we should cut down on expenses.

Everyone has a different answer. Here's my suggestion: control the absolute amount of savings. For example, set a goal to save a certain amount this month and the next. If you have extra money, you can use it as your consumption budget for the next month. You can achieve this goal by either cutting down on expenses or increasing your income. It all depends on your own ability. We should focus on the result, not the process. And this savings goal can be adjusted according to your living standards and experiences.

OK, that's all for today. Truly, being debt - free is a great feeling.

Daily Reading & Writing by Xiaolu 06/06/2025 [Day 641]