Bermuda Triangle of Debt 2021

Welcome to summer 2021!  Again, I hope you are all healthy and as well as you can be.

Back when I started writing blogs and doing videos, I began talking about the Bermuda Triangle of Debt.  You may be wondering what I mean by that so, let me explain myself.

There are basically two really expensive times of year for 99%ers.  One expensive time of year is Christmas or the holidays.  That’s the time of year where we spend heaps of money on gifts, decorations and parties.  We love spending money on the holidays and we’ve been doing it for years and years.  We expect it and try to plan for it as best we can.  No surprises there!

You may think another “expensive time of year” is tax time.  For some people, this might be true.  However, for most 99%ers, their goal is to get a refund and not have to pay.  To make sure of this, they adjust their withholdings in such a way that they have enough taken out of their paycheck to pay their tax bill every month, and then some.  For that reason, I don’t include tax time in this “expensive time of year” list… yet.

In fact, the other most expensive time of year is right now, the end of spring and the beginning of summer.  I call it the Bermuda Triangle of Debt for a reason.  I named it that because there are three big types of expenses that tend to come around this time of year.  Graduations and weddings, vacation season and moving season.

Late May or early June is the time of year that one big thing happens that affects a lot of our lives.  That’s when school is over for the year.  This is true whether you are graduating or just going on to the next grade or year.  If you are graduating, it’s time to think about paying for college.  This is true whether you are graduating from high school OR college.

If you are a high school graduate, you are probably about to take on some kind of debt to pay for college.  If you are a college graduate, it’s time for you to think about what you are going to do to pay for that degree you just got.  Either way, you are dealing with big financial decisions that will likely affect your lives for years to come.

The end of the school year also means that kids are free to travel without having to worry about their schoolwork or grades.  This means families can hit the road and take whatever vacation time they can to relax and unwind.  This also means it’s time to move since it’s easier to change schools before the next school year starts.  Whether you are traveling temporarily, locally, long-distance or for good, summer is the time to do it if you have kids.

Finally, wedding season has traditionally started in June.  It has been the time of year that lovers think of tying the knot and starting their lives together.  The phrase “June bride” is popular because it’s true.  June is a great month to get married and many couples take advantage of the blooms and weather to enjoy their special day.  Who can blame them for wanting to make their weddings memorable and beautiful?

All of these traditions and life events are magical, joyous occasions that we long for.  Some are terrific milestones that reward years of hard work and sacrifice, too.  That is the good part about these events and traditions.  The bad part is how these things can break the bank, if you aren’t careful.  Especially now, since the start of the “twindemic,” these expenses threaten to balloon, if we aren’t careful.

The Bermuda Triangle of Debt has always been an expensive time of year.  Now it’s even worse thanks to the Coronavirus.  For example, every event that can be outdoors has been moved outside to make it safer (I’m all for that, by the way).  This goes double for weddings.  You’ll see more outdoor weddings than you’ve ever seen before, that’s my prediction anyway.  So, outdoor venues have become more popular, driving up prices and reducing their availability.

Folks are traveling with a vengeance this year, too.  Everyone who was homebound and locked down in 2020 is hitting the road in the wave of “revenge travel” that is sweeping the nation.  Flights and hotels are getting more and more expensive and they are still filling up.  People are itching to go anywhere and they are willing to pay big bucks to do it.

And how about that real estate market?  The prices of homes are going through the roof!  Homes are getting multiple full-price offers and they are selling immediately with all kinds of deals like no home inspections and extended closing dates.  Interest rates are really low and people in tight quarters are looking for space.  If you are in the real estate market right now, you know what I mean.  It can be a boon or a bust, depending on your situation.

If you factor in an economy where millions of people lost their jobs because whole industries like restaurants and hotels shut down last year, you get a hot mess.  It all adds up to a serious financial strain on our wallets, bank accounts, brains and hearts that doesn’t appear to be letting up.  Thanks to the pandemic, we continue to suffer from a suppressed economy.

I know this is no big surprise to any of you, so why am I writing this blog?  Well, first of all, I want to remind you that you can avoid the Bermuda Triangle of Debt by remembering it’s the event that matters, not the money you spend on it.  Two of my three graduations were celebrated in garages.  That’s what we could afford and that’s what I got.  Both of them were exciting and fun for me and I wouldn’t trade those memories for anything.

Second, being aware of the financial difficulties folks are having is only one part of the equation.  In order to enjoy these events and traditions without breaking the bank, it takes planning and that takes awareness.  Now is not the time to stick our heads in the sand and forget what is most important, sharing special occasions with family and friends.  Instead, try to remember why you are there and what you are celebrating.

At the end of the day, all we can do is our best and if that means a potluck celebration in the garage, a garden wedding behind your home or a day trip to the nearest amusement park, so be it.  The events and traditions in our lives do not have to be expensive to be joyful and happy, they just have to be with the people you love.  Instead of being sad about your money situation, choose to be thankful that you can be with the ones you love.  That is a gift worth its weight in gold.

P.S.  Make sure you check out my online courses, books and resources, too!  Investing in your money management education is an investment in yourself.  That’s the best investment you’ll ever make, I guarantee it!.  Don’t forget my weekly Facebook live videos on Facebook.com/newcashview, Instagram @joyalfordbrand and on my YouTube channel NCVTV. You can catch me on Thursday evenings after 9:00 (Eastern Standard time), for my weekly NCVTV episode. They are packed full of useful and entertaining money management information! If you’ve missed any NCVTV episodes, you can see the latest on newcashview.com or you can check out my YouTube channel and get caught up! You can get there by clicking here. Remember, like and share the NCVTV videos on Facebook and all your social media platforms, so others can benefit from them, too!