Over 50% of their take home pay was going to be tied to one expense. It hit me; this great gift from his parents was very naïve. It was blatantly apparent they could not afford this house and near certain financial troubles were on the horizon the first time an unexpected expense arose.
This gift was actually setting them up for failure. His parents would have been much better off giving them this gift when they were properly prepared to use it.
I have met with 25-30 young professionals over the last two years and I can say that only two have had a better situation than I had after graduation. When I was a senior in at the University of Arkansas I was accepted into American University’s graduate program despite not having the minimum grade requirements or test scores. Then the only person I knew who lived in D.C. basically handed me his job working as a full-time Federal employee for the Air Force.
On my first day I was making more than teachers I knew with 20 years of experience. However, much like my friends in the house they can’t afford, I was not ready for this job. This great job gave me a false sense of security that somehow my career was already set. This student program was set to give me preferential hiring status upon my completion of graduate school and left me thinking I had the whole world figured out. Well as most of you know I sat and watched as those a year ahead of me in the program could not find jobs and were forced to leave the Federal government.
I spent 18 months applying to over 120 jobs and did not land a single interview until month 9. Eventually I was forced to take a job I hated as a contractor that was unrelated to anything I had studied in school.Much like my friends in a house without enough income, I was in a great but temporary job, having never developed the proper skills that come through scrapping and fighting for that first job.
Similar to my friends who will not be able to save for retirement or rainy days because of this house, I lived in a world of false security convinced that applying online would be enough to land my second job because my ‘great first job was so impressive.’