Wednesday, October 10, 2018

Financial Discipline Gives You Choices

“If you don’t learn to spend less than you earn, it won’t make any difference if you earn twenty thousand dollars, fifty thousand dollars, or one hundred thousand dollars per year. Your spending would simply rise as your income rose.” -Dwight Nichols

The “get now pay later mentality” gives you an illusion of choice. Sure, you get the item as advertised but you sacrificed future time for it and in the end it isn’t worth it. What if that future time is needed to combat an illness or help a friend in need? Time is limited - what will you do then?

I recently decided to change city. I woke up and felt like I was in a rut and I missed my family. On my way to work that day, I decided that I would quit my job and move to be closer to the family.
Now here’s the thing, because I was financially stable, I didn’t care whether or not I had a job at the new city. I didn’t think about it because I knew that even if I didn’t have anything I could still go on. It wasn’t the end of me and I would lose nothing from doing so.

People that are heavily in debt do not have that choice. If they decide to move to a new city, they have to think about what they will be doing once there. If they do not find work, they can’t go. One has to wonder - was that “get now pay later” couch worth it?

Learn to say no to yourself. If you have to finance it, you shouldn’t be having it. “I need a car though” - sure you do, but does it have to be the latest model? Live within your means.

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