Million dollar mistake #2
Million dollars mistake #2
Patience is not a friend of your. If you want to be a millionaire say no to credit cards no matter how good looking and well designed they could be. Until the “explosion” of credit services offered by banks these days, one had to give it a lot of effort to spend more that he/she had. I should even say that the situation “living on what you’ve earned” was a favorable one. It has all changed… Now you can spend as much as you want and even more - the consequences will be faced much later. What makes the situation even worse is the fact, that the society encourages this kind of financial behavior. If you don’t have a mortgage or a loan – you are considered to be a person not using “all the possibilities”. This thinking is totally wrong. But we’ll talk about it later on. Now let’s get out attention back on patience and credit cards. Once a person gets a credit card, he automatically tends to spend more. Obviously – he get a greater purchasing power. And what usually happens when one get a greater purchasing power? Same as other power and powers… he starts using it. There will always be an excuse to use the credit on your credit card. Hence, there will be always a debt situation, because of the inability of controlling your wants and needs. Not having enough patience to wait until you have enough savings.
The equation is simple: by spending what you don’t have, you’re making someone who is patient enough wealthy. I absolutely agree on credit financing purchases one can’t live without – such as housing, education, health related expenses. But it is so sad admit, that most of the credit expenses are being spent on the shiny toys such as new cars, plasma TVs, jewelry etc, things that decrease in value the moment they’ve been purchased. These all purchases we have already discussed previously in the “Public opinion” part.
To conclude – here is the simple equation: by spending what you don’t have (credit) you’re making the banker even wealthier, meanwhile drowning your dream of financial freedom.
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