[USER]

Really made some terrible “young” decisions here recently. I’m currently 25 and left a stable military career after 6 years attempting to start up a real estate fix and flip dream venture. The goal was to fix and flip then funnel profits into rental properties.

I left my career behind and made the jump with $-10,000 and nothing in savings. Attempted to start this business up on credit cards which left me $-50,000 in the hole. After not generating any profits I called it quits. Very very young and dumb decision I’ve realized.

Since then I’ve found full time employment paying $75,000/yr cut my expenses, and am working on cutting down debt. I’ve also enrolled back in school to finish my degree. Moving forward I’m practicing Dave Ramseys 7 baby steps. Any other advice on this? I feel terribly down and out after making these dumb decisions.

[Brian]

Okay, let me paint a picture for you. I left Defense contracting to take an internship that paid me 35% of my income I was making. Had to move back into my parents home for a year. Now I make well into 6 figures and enjoy what I do.

First RE deal I lost a good chunk of change. I bought at asset right, did all the due diligence. The problem: I bought the wrong asset for me. Sold it at a loss just to get out from it and re-allocate my capital. Now I’m partnered to buy medium to large multi-family assets and starting a whole sale business.

Your only mistake was not being prepared. That’s it. Taking risks is a skill. You have a skill very few have. It’s learning to take measured risks and hedging your risks that’s crucial. Sometimes it takes failures to reach us these lessons and put us on our path. You’re finding yours.

I’m a former Weekend warrior so I do understand the military culture to an extent (Navy). I can say you’re probably better off than if you had stayed in.

Happy to assist in anyway I can. You’re not in as bad as shape as you think!

[Chels]

I wouldn’t get to hung up on Dave Ramsey. The baby steps are GREAT and I used them to get out of debt and get a savings going, etc. but some of his beliefs aren’t realistic for the average not millionaire human.

I followed his no credit card stuff for 8 years and I’m so glad I got off that wagon. For one, personally, I need a credit score. Single mom of 4 under 6 and the number of things that base you off your credit is astounding to me.

That being said I almost never use them. I have all my small monthly bills like Hulu and Spotify on them cause I’m guilty of forever forgetting when those come out, but the second I get a text that one of those little subscriptions has charged I log in and pay it off.

I’ve never used it for something I wasn’t already going to pay anyway, like I’m not gonna go buy a tv on one. Anyway, you clearly have a ton of ambition to be this young and already have been through this so I think you’ll find your way out. I agree with others that have asked about going back in, even if only for a couple years? (Like don’t get me wrong, I was in the army and was miserable for every second of it, my contract being up was the greatest day of my entire life so if that’s how your time in service was then nevermind.)

[Angelo]

No shame, no blame. Let go of the bad feelings (often not easy to do). Learn from your past. Focus on making good decisions today and moving forward. 75K is fantastic income, your future is bright!

[Darin]

Because you tried something “big” and failed doesn’t mean you’re a failure. Those who never try are the failures. But most big ideas DON’T pan out. Learn from it and move forward. I would say though, don’t let that scare you away from trying big things in the future. It wasn’t the big idea that failed, it was your execution!!

Put your head down and work for a little bit to gain some good footing (no consumer debt, some money in the bank. Whatever makes you feel in control) and THEN see what big ideas come back to you and execute with a better plan.

[张扬]

We’ve all paid stupid tax, so don’t be too hard on yourself. Just try to learn from the experience and do everything you can to avoid accumulating any more toxic debt in the future.

If the existing debt becomes overwhelming due to absurd credit card interest rates, bankruptcy is always an option if you have no other avenue available (such as refinancing or negotiating a reasonable repayment amount), but it is a last resort. Also try to avoid/minimize student loans as they are difficult to discharge in bankrupty.

[Shannon]

When I did stuff like this (ex-boyfriend ran up a joint cc before he bailed, left me with $15k in debt when I made $42k a year….lord that sucked) I tried to think of it as purchasing an education – but its only worth it if you learn from it, and it sounds like you have!

So many stories right now are just highlight reels with all the truly bad parts filtered out. Keep that in mind. I bet every person in here has a ‘failure’ that led them to finding FI.

[Author]

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