Saturday, April 28, 2012

Just Gotta Wait

Today's post was prompted because, as much as I hate to do this, I'm going to have to postpone the budget making post. Tate woke up from his nap in a bit of a mood, so I'm not going to have much time to post, and the budget making post is important enough that I need a good chunk of time to dedicate to it. I'm hoping tomorrow will work better to fit it in!

BUT, because it fits so nicely, I couldn't help but post about something else that is very helpful when handling finances-- patience.

In today's society, most people don't know how to wait. I'm no better. It's hard to be patient, postpone things, wait. We live in an instant gratification world. Unfortuntately, the world of finances is one where it is extremely important to know how to wait.

Credit cards, and debt in general, is all about getting it now. Debt is all about I can't afford it now, so I'm going to pay for it later. If you take Dave Ramsey courses, he'll tell you to elimate all debt. No credit cards, no student loans, not even a mortgage. And I will admit it seems like a great idea. I also think that, to an extent, it is realistic. Yet, there is also parts that aren't so realistic. For instance, our house. We had an excellent opportunity to buy our house, and our payments are lower than most people pay for rent. Had we not bought our house since we had to take out a loan, we would be paying more for something that held no value to us long term. While I grasp in many situations it is very good to avoid debt, there are also some that it works out okay, and maybe even for the better. I'll likely go into that more later...

But anyway, back on topic-- it is WAY too easy to swipe a card and get a new outfit, piece of furniture, fancy meal, and the list goes on, instantly. All too often though, what comes next is an outfit you pay for longer than you wear, buyer's remorse, or being even more broke.

Ulitmately, this is what I'm saying-- think before you buy. I'm not going to tell you to never go into debt. But I am going to say think long and hard about if what you want to go into debt for is worth it. Look at the interest rate-- how much will you actually pay for that item if you don't pay off the debt immediately? Is it something you really need or is it something that looks cool now, but really isn't of much value to you? And actually, this policy relates to if you're spending cash too... make sure your purchase is worth it. Don't be afraid to wait a day or so before you buy. It might save you a few dollars and cents! :)

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