Is it just luck?
“Debt happens. And it happens to most of us, unless you’re one of the lucky few who can afford to pay cash — in full — for a house or a new car”, says Dayana Yochim in a quiz called Financial Fact or Money Myth.
Unless you’ve just won the lottery or some other game of chance, I disagree. Being able to afford to pay cash — in full — for anything is rarely a matter of luck. It’s a matter of time, dedication, desire, and commitment. Yes, sometimes events like Hurricane Katrina happen, creating huge setbacks and insurance messes, but there are things that can be done to minimize the financial effects of disasters (and those things aren’t a matter of luck either.)
Debt is not just something that “happens”. It’s a choice. Why do statements like that bug me so much?
Two reasons:
One, it’s insulting. All those years of spending less than I earned so that I would have a large cushion of cash? Not luck. The day I decided to stop my 2-Big-Gulp-a-day habit? Not luck. The extra hours I put into two businesses on top of working a full time job? Not luck. The choice to pay cash or pass on the meal from Wendy’s instead of putting it on my VISA? Not luck.
Two, it’s depressing. If you think the things in life are just a matter of luck, what use is it to try to change things? Everyone has choices. Chalking things up to “luck” is giving up your power. We all have the power to change our lives for the better.
November 2nd, 2006 at 1:50 pm
I’m with you. I hate when things are left up to luck or “fate.”
However, I wonder how many people have never had a moment of debt (school loans, car loans, or mortgage loans) in there life while having a degree, a car, and a home. I would say that probably 80% of the people in that situation ran into some degree of luck.
There are only so many places you can save for some of these big purchases. In my town, I’d need to save up around $650,000 for a “fixer-upper.” I suppose I could move to a cheaper place to live, but even there, it would take an abnormally long time to save enough to buy a home in full while renting. And I wouldn’t really recommend a friend do it.
November 2nd, 2006 at 2:46 pm
I couldn’t have said it better myself. People always ask me “how did I do it?,” or “you must be lucky.” or this one is the best, “who helped you?” just because I’m a single mom who’s financially independent.
Umm, how about the 3Ds of my life…decisions, determination and dedication. They don’t require any amazing effort, luck, OR assistance from others. Sometimes I want to respond and say, if I tell you what I did over the past 10 years, are you going to do it too? LOL
I’m not completely discounting luck, but life is about DECISIONS and what you make of it.
November 2nd, 2006 at 3:16 pm
I agree that we are in charge of our financial fate. It is not luck but foresight.
Yet, we as a society have set ourselves up for looking for an escape goat to blame for our problems. And, even the word prosperity comes a Latin word (prosper)to mean fortunate. Thus, to be prosperous mean to be lucky while others in proverty must be unfortunate (unlucky).
November 3rd, 2006 at 11:53 am
I do not think it’s just luck…also think that sometimes the best laid plans can go to hell in a handbasket…
We may choose who we marry–and who we divorce–but we may not have known they were going to ring up $10K in credit card debt and not pay it…
We may have healthy habits, and still be diagnosed with expensive chronic illnesses as can our children.
Some of it is, you just have to play the cards you’ve been dealt–and make the best out of the situation.
November 3rd, 2006 at 12:17 pm
Liz, I agree with you that sometimes things like that can happen, but I still think that we have a choice. Even in horrific situations there is SOME choice, even if it’s just what we chose to think about. Her statement really bugged me the most because it was just sort of like “oh well la-de-dah we have to live with whatever randomly happens, and those other people? They were just lucky, they didn’t have a choice either”. Maybe I’m reading too much into it, but hey that’s my choice ;)
November 5th, 2006 at 8:13 pm
[...] Blunt Money wonders if it’s just luck that we end up in debt. They’re right that luck has nothing to do with it. Good financial decisions require 0 luck. Anyone who attributes luck to being in debt, needs a little talk about personal responsibility. [...]
November 6th, 2006 at 10:15 am
Luck favors the prepared (and financially educated)
November 6th, 2006 at 12:44 pm
Well said. There is no incentive to take initiative, or really experience life with your fullest potential if you live with the belief that you are not in control of your own life. This line of thinking also perpetuates class warfare. It’s a destructive way of thinking.
November 14th, 2006 at 11:20 pm
[...] Blunt Money doesn’t buy the comment that getting into debt is just bad luck. [...]
August 28th, 2007 at 12:43 pm
If it was all about luck, then may I win the lottery drawing tonight! (Pool with co-workers, no not a habit! I swear!)
I think a person makes their fate in life. Empowerment and realizing control over one’s own life is all that it takes to get started on the road to wealth.
Single Ma rocks the house. She is truly amazing for her hard work, earning what she has in life. I think I’ve been damned lazy, myself, but there have been moments in my life where it was my own hard work that made the difference and not some fairy godmother.
Good on you for highlighting a PF gaffe by Dayana Yochim. If I’m not mistaken she writes for The Motley Fool (One of the most annoying websites ever). Honestly, her statement just perpetuates the notion that people don’t have to work to be a success. It’s a rather self-pitying remark to say ‘debt just happened’ and if you have the cash to pay for your expenses, you’re just ‘lucky’.
B.S.!