Meet Diann

I’ve always said that it can be difficult for a young female to build a financial portfolio while building a stylish wardrobe. The two just conflict sometimes. I’ve started a new series showcasing my friends (the names have been changed to protect the struggling finanshionistas) and the decisions they make about fashion and finance.

Meet Diann:

She is twenty-one years old and a recent college graduate. She studied accounting so I would see her in a few of my classes. She is highly motivated and very head strong. If she has an opinion, which is very often, she shouts it out and doesn’t care who may oppose or take offense. She’s a good friend. She’s someone who takes pride in her appearance and always dresses nice. Nice as in Coach wedges and handbag to match. She carries two phones: one sidekick and another mp3 capable device. I’m not sure why. One thing about Diann, is that she is definitely a people person and makes friends (and sometimes enemies) quickly. And she’s very responsible. You can count on her to be on time and well prepared. Oh! And Diann just bought a brand new car.

She works two to three jobs and has over $125,000 in good and bad debt. ” I love moneyis her mantra. I think vh1 owes her some money for copyright infringement…

Diann and I are not that close. In all honesty. I couldn’t afford her lifestyle. It didn’t feel good to be around her at times because of all the money I could not spend to keep up with her pace. In college, it was custom to buy a new outfit with every new event that Diann and I were invited to. Be it your everyday, everyday bar or an on campus school dinner. And it became even worse once we were all of legal drinking age. Do you know how much a pomegranate martini costs these days?!?!?

Now Diann lives a lifestyle I hope I can outright buy one day. She is currently renting a two bedroom apartment (yes it’s just her) about twenty five miles away from Philadelphia. She intends and is currently shopping for all new furniture. For the most part she pays cash (or uses her debit card) for small purchases. However, Diann does not have an emergency fund or anything else to hold her over in the unfortunate event that something happens to her current employment status. I rubbed off on her a little because she did open a trading account with TD Ameritrade.

Diann is anxious to live the fabulous life that I refer to but insist that you find a better way to pay for it.

My plans after graduate school include me staying in my little one bedroom apartment in ‘collegeville’. I will learn to the love the drunkards howling at the moon while I save on rent. In the meantime, the money saved will be used to go towards a rental property that will bring me cash flow in excess of my current and future rent payments.

The problem here is that DIann is caught up and walking the fine line between in control and out of control. She works harder, not smarter, to afford her lifestyle and soon enough her debt payments. Deferment, not having to pay back on your school loan until six months after graduation, does not last forever…


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