2023 Author: Katelyn Chandter | [email protected]. Last modified: 2023-05-21 13:08
Financial experts have named the main mistake people make, which makes them poorer. One of the most unpleasant financial traps of modern man is the love of living on credit, installments, advance payments, loans and debt. Why are you wasting money that you don't have yet?
Experts in the field of finance said that people behave completely illiterate with money. They ask the main question to the layman: "Why are you spending money that you have not yet earned?"
Debt is a bad habit of living in debt and not knowing how to spend money. Loans, bonus cards, discount systems and installments without overpayments make a person poorer. Banks are not stupid. They take advantage of human weaknesses, the desire to get here and now. They set traps for clients and voluntarily go to slaughter.
People easily take in installments or on credit things that they don't really need. You can also understand a loan for an apartment. But buying a car, phone, computer, sofa or other thing? People are in a hurry to get a thing faster, although they have not yet earned money for it.
If you collect money and then buy it, that is different. You would feel how much work and effort you put into this purchase. In most cases, I even gave up most of the things that you buy in installments. Money is worth a lot. A telephone in installments costs you a month's salary, although in installments for a year it is very little. You cheat and buy a thing that really isn't cheap at all.
Loans make a person feel reckless about money. These can be impulsive purchases, when you have to pay for it months of work later. Without loans, you would not have bought even half of the things you take now.
Count how many hours, days, weeks, months or years you have to work to get the desired thing. Maybe it’s better not to work for a year than to change one car for another? Can spend money on completely different things? Loans and installments drive you into bondage.
If you save up and buy for cash, you can always find a place where the thing is much cheaper. So, having bought a laptop not in installments, but a few months later, for cash, I saved 200 USD. Money does not lie on the road. The money saved is the money earned.
What happens if you get sick, lose your job, or need money for important things? You have already borrowed and spent money that you have not yet earned.
Loans spur a person to consumerism and consumerism. A person becomes a part of a consumer society, imitates the rich, pursues status and imaginary well-being. A person spends his whole life making money, which he recklessly spends on useless things. As the heroes of the film "Fight Club" said: "We are just consumers … We are obsessed with the external paraphernalia of prosperity."
Loans, installments and other debts do not make your life easier, they make you poorer. This is a deal with the devil. You spend money that you haven't earned yet. Remember this and share with your friends.