Some people in this world are good at saving. Others are good at spending. All in all, most of us are able to live within our means. Some of us carry a bit of credit card debt and some HECS or maybe the hangover from a recent holiday. But it is all dwarfed when you go and get yourself a mortgage. 

My parents told me a pretty sad story the other day. Friends of theirs have got themselves in to a pretty nasty bind with too much debt. They sold their house a few years ago as it was no longer suitable for their lifestyle. Too big and a pain to maintain. One of them has had health issues for many years and as a result has been unable to work. In an attempt to set themselves up for their remaining years, a considerable investment was made in property. Sadly, this went south and they lost their money. 

As a result of this, they have been living off credit and they are now no longer in a place where they can service this debt. One of them has been forced back in to the work force to try and salvage something. Add to this in an attempt to manage the cost of living, they are staying with friends whenever they can.

I found this quite shocking and got a bit of a rude awakening. I have been guilty of leading a lavish lifestyle the last year or so. Time has come to trim it back and live within my means. I want to buy a house later this year so time to clear the debt and get back in the black.