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May 23, 2006
Are you a lose canon with your credit?
What is it about credit that creates the sense of entitlement? In today's world of instant gratification and
the ease at which credit is available certainly gives the average consumer a sense of "I can have it all and have
it now".
Credit card and loan companies have certainly made it easy for us to get credit. A quick call to a lending institute and
sometimes within hours we have a line of credit at our disposal. Now what? We go off and spend up a storm on stuff.
It could be a home renovation or a luxury item such as a boat or car. Cool, we got a neat toy to brag to our friends
about but is that what we really need, bragging rights? We can now go off and live in the moment with our "cool new toy"
but after a day of zipping around the lake in the new boat or whizzing down the freeway in our new car we head home, back
to reality, and there's a mound of bills that need attention. How the heck are they going to get paid? Whoa... Did
we forget that our toy with an internal combustion engine requires maintenance? Did we forget that the cost of fuel
is skyrocketing out of control?
What if that same money was used differently? What if we put off our modernistic "I need it now" attitude and revisted
our parents or grandparents philosophy of save up for the toys we want and then buy them outright? What if we waited a
day, week or even a month before spending on frivilous items? Could we create a better life for ourselves?
Yes we could! How do I know? Well, let me tell you, I have been there done that!
I have been running an incredibly successful business, a business with an income that would well exceed most people's
wildest income expectations. Yet I find myself struggling to make ends meet on an income of $20,000 per month.
How the heck is it possible to struggle at this level? Over-zealous desire for stuff, that's how it becomes
difficult to make ends meet at this level. A new luxury home, 2 new luxury vehicles, over-spending on vacations and some
very fine dining, the list goes on but really what it comes down to is "what the heck...I don't have the cash for that
right now so why not just finance it". That is not a great attitude for creating financial freedom.
I hope my little rant here can save somebody from their "I gotta have it now" attitude - Wait till tomorrow, there will
be a new and improved toy coming out for less money. Consider paying off another debt instead of getting that "whatever it is" today.
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Comments
Hi Colin,
20K/month? whoooooooooooooo niiice I could live paycheck-to-paycheck like that!
I've just read your VEO Report, definitely will be applying it. You've definitely done a lot of VEO with crediteria.com, a lot of information that I actually need myself at the moment, thanks!
chris
PS pleeeease don't post my email address, URL ok though of course, perhaps you could change my name to Colon Cleansing, ha! Looks like I haven't learned alll the lessons from the VEO Report! =)
Posted by: Chris | May 25, 2006 01:50 PM