If you don’t have the money to buy it…… DON’T BUY IT!
There are banks everywhere competing to give you money. Cars are sold by how much they cost each month, not by their price. Credit card companies promise rebates and discounts. The promise of “buy it today” is all around us.
And why shouldn’t we buy it today?
We work hard; we are going to be working for a long time into the future. We can afford the monthly payment. There is no interest if I make my payment on time every month!
Buying on credit and accumulating personal debt: “everyone does it”.
How credit card debt is obtained:
I want it
I don’t have the cash for it
My credit card will allow me to have it
I buy it = instant gratification!
The scary thing about credit cards is that they make a purchase so easy. There is no need to even consider the cost in relation to the money you currently have. “I see it, I want it, I can get it with this card.”
Credit companies and lenders spend ridiculous amounts of money on advertising. These companies have deep pockets and hire only the best marketing geniuses!
I keep running into credit advertising words like: earns, free, cash back, give, bonus, opportunity, helping, grow, saving, choices, freedom…….
These marketers are master storytellers. These guys are experts at painting pictures of a world where the banks are our friends. They’ve got our backs! They are going to HELP US!
However, nothing could be further from the truth! The world that they paint is a fantasy land. Those banks and credit companies are willing to lend you money until your back breaks under the burden! They are willing to see you homeless and bankrupt!
If you don’t pay them back, they write off the losses on their taxes. They win no matter what, as long as you keep borrowing to achieve the American dream!
There is one way to tell them F-U!
Don’t borrow their money!
A couple of dictionary definitions of debt:
Something that is owed or that one is bound to pay or perform for another
A liability or obligation to pay or render something
A condition of being in a state of obligation
The state of owing
There was also a list of “words related to debt”: Bond, delinquency, bankruptcy, embarrassment, insolvency
I noticed that none of the words the dictionary used to describe debt are positive. These are not the words used by the bank and credit advertisers.
Because the dictionary is not trying to lend you money or sell you anything.
Reality is interesting.
Changing your perspective on how you look at debt and credit are key in establishing financial strength. If you become disciplined and decide not to borrow money, you are forced to only buy what you can afford.
Don’t use loans or credit on a monthly basis, the worst thing that could happen to you is that your bank balance would be ZERO at the end of the month.
Don’t borrow or spend all that you make, your bank account can accumulate money from month to month and you can build the ability to purchase those things that you want with CASH!
“But what about me? I already have debt, that’s not an option.”
I suggest this process; it’s what I did to get out of debt and it works: http://firefightermoney.com/6-steps-to-financial-strength/
Make a decision to change the way you handle your finances, and then take ACTION!
You will need to make a decision to stop spending more than you make;
You will have to make a decision to pay off your debt.
DONT CONSOLIDATE IT or REFINANCE IT! PAY THAT $hit off!
It’s your debt, you earned it, take your beating and pay it back! Creating a Budget will allow you to it.
Let the discomfort of the process discipline you to not let it happen again.