Pic via Stargate Wiki

One of my favorite episodes of Stargate SG-1 is Window of Opportunity. In that episode, Jack O'Neill and Teal'c end up reliving the same six hours over and over again. The premise is very similar to that of the Groundhog Day movie with Bill Murray.

I think the idea of being stuck in some kind of time loop can be applied to personal finance, too.

I mean, haven't there been times in your financial life where you feel like you're doing the same thing and have nothing to show for it? Or perhaps you, or someone you know, continues to make the same, stupid financial mistakes over and over again (like my dad seems to do). This is what I call being stuck in a Time Loop of Financial Misery.

Here are seven signs this may be happening to you:

1. You Only Pay The Minimums

If you're barely able to pull together enough cash to pay the minimum required payments for your debt every month- this is one of the first signs you're stuck in a time loop of financial misery. However, I take it even further than that. I apply this not only to credit cards and student loans, but also to car payments, mortgage payments and any other debt you may have.

The average credit card takes decades to pay off when you only pay the minimum payments. Many graduates are extending their payment plans to 20 years or longer just to keep up. Car loans have stretched from 2 or 3 year to 6 or 7 year financing terms.

Ponder this- when you sign a 30 year mortgage for that new home, do you really have the temporal sensitivity to comprehend how long that is? That's 360 months or 1560 weeks or 10,957.5 days or 262,980 hours or 15,778,800 minutes that you owe money to someone else.

2. You're Getting Calls From Bill Collectors

This is an obvious sign of financial problems. It doesn't matter if it's past due medical bills, old utility bills, consumer debt or other obligation- if even one bill collector is contacting you, it's time to evaluate your current financial plan of attack.

If you don't have a plan- get one...FAST! If you're not sure how to create one- there are plenty of sites that offer tips to create one.

You can start with a simple balance sheet and a budget or money plan to assess where you are right now and what you need to do over the next few weeks, months or years to fix your situation.

3. You Use Payday Loans, Title Loans or Pawn Items Regularly

There's a reason why most poor people stay poor and why most debtors stay in debt. It's a little thing called interest. Even if a company calls it a “fee” or “service charge” or “account maintenance” or something else- I consider it a form of interest.

Once you get a payday loan, title loan or starting pawning your stuff to pay your bills, buy food, get gas to get to work or whatever- you're essentially trapped in a payoff cycle. It's very difficult to escape or ever get caught up.

4. You Use Credit Cards For Emergencies Or Vacations

Most things people call “emergencies” aren't really emergencies. Getting into a car accident can be an emergency. An unexpected illness and the associated medical expenses are sometimes emergencies. But new tires or brakes, broken appliances or electronics and home maintenance and repairs are not emergencies. They are inevitable. Don't be reactive to these life occurrences- be proactive. Expect them!

While I'm at it- Birthdays, Anniversaries, Holidays, School Supplies and Clothes and the like are not surprises, either. They happen every year. Plan and save for them. Don't get into debt for something you know is coming!

5. You Have Little Or No Money Saved

But Dave, you may be saying, I have too much debt and expenses to save any money. Really? You can't save $5 a week, $10 a week or even $50 a month? If that's the case you need to either cut back on the amount you're spending or get a second or third job. Better yet- why not do both?

While you're at it- you could always sell some of that useless crap you bought and never use. Need to know what to get rid of? Apply my Rule of 13.

After our bankruptcy was finished, we started saving $50 a month. Then we upped it to $100 a month. Then we raised it to $175 a month. This is how we started our emergency fund. It was a very small amount, but it was at least something.

Even if you're debt is overwhelming, you should at least get $500 in the bank before you start attacking your debt. Call it an emergency fund, a “just in case” account or even a “shit happens” fund. The name doesn't matter- but it's purpose is to save your butt when you're in a financial pickle!

6. You Work To Pay Other People

You get up, go to work, make some money, come home, go to sleep and then get up and do it again. Round and round we go and where do we stop? Most people never do. They work just to pay other people...until they die. The days add up to weeks. The weeks add up to years. The years add up to decades. And what do you have to show for it? More bills. Congratulations!

You keep working to buy food, pay your mortgage, make car payments, pay utility bills, try to pay off student loans, pay your cell phone bill, pay for internet, pay for cable/satellite service, try to pay off credit cards and so on.

If we're working all the time- when do we have time to enjoy any of the stuff we're paying for? I mean really...why the hell are we all content with working to simply pay other people? Don't you want to keep the money you earn? I know I do!

7. You Dream Of “If Only” Scenarios

The time loop of financial misery manifests itself in our imagination, too. It does this through the infamous “if only” narratives. You know what I'm talking about, right?

If only I won the lottery...

If only I had a rich relative who died and left me a fortune...

If only I win a lot at the casino...

If only I get a bigger IRS refund this year...

If only I get a bigger bonus this year...

If only I had a better job...

If only I could get a pay raise...

If only my spouse/partner wouldn't spend so much money...

If only, indeed!

Problem is- "if only" doesn't usually come to pass. Why? Because we expect someone else to do something, instead of getting up off our own ass to make it happen. The only person who can enter the correct sequence to stop the financial time loop machine is YOU!

 
Pic via Stargate Wiki

You have to be the one to change your financial situation. You have to come up with a plan- or at least find someone who can help you. You have to take action on that plan. You have to keep working that plan as long as it takes. You have to take responsibility for your financial life.

Otherwise, you're going to be stuck in this time loop of financial misery.

Otherwise, you're going to be stuck in this time loop of financial misery.

Otherwise, you're going to be stuck in this time loop of financial misery.

See what I mean?

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