The Lost Art of Paying for Things Right Now
Myth: You can get rich by living today at the expense of tomorrow. It is the doctrine of the political class, professional economists, and central bankers—and it leads to fiscal default. The actions of our government and the Fed will tell you that, “Extraordinary monetary policy is the new normal.” This statement doesn’t even sit right with political policy, so let’s see how horribly it plays out in personal finance.
Most of us want to create something lasting in our lives—something that would not only survive our lifetime, but would provide value to the future. Humans are hardwired to create, build, and leave legacies. This is only possible when you work toward a future that you will not entirely benefit from yourself. Unfortunately, most people also have a preference for current consumption over future investment. The “I want it now” attitude is nothing less than hedonism, and that’s a hard pill to swallow for most of us.
In sum, we might say that Congress and the Fed are co-conspirators in a plot to have us live for today instead of building for tomorrow. They are not examples from which to model our personal financial strategy. Cheap credit, the drug pushed by central bankers, makes us prefer the saccharine pleasures of consumption to the lasting satisfaction of productive achievement. It makes us buy houses that are too big, cars that are too elaborate, and college educations that are too expensive. Revised from The Free Lunch is Over, Mises Institute.
Healthy societies consume less than they produce. A healthy consumption to production rate creates an upward spiral that increases investment and productivity, making a future richer and brighter for everyone who comes after.
Recognize You Have a Problem
Is your debt frequently on your mind? Do you get a queasy feeling every time you swipe the ol’ credit card, because you know it’s digging you into a deeper hole? Instead of pushing it out of your brain, it’s time to realize you’re in over your head. Here are a few other signs you are consuming today at the expense of tomorrow from MoneyTalksNews:
- • You’re not sure of your outstanding balance—you don’t plan to pay it off anyway.
- • You only make the minimum payment—a trap that only spirals downward, because you’re only paying the interest.
- • You don’t have cash to enjoy even ordering a pizza without using credit, because your bank account is overdrawn or barely hanging in there.
- • Saving money isn’t even on your radar because your credit card bills quickly absorb any money that could be set aside.
- • You need to work overtime or find supplementary income to pay down your debt.
- • You’ve maxed out at least one card, because you keep spending until the funds run out.
- • You can’t stop using your credit cards. The thought of cutting them up gives you anxiety.
If any of these sound too familiar, it’s time to take a look at the bigger picture. Evaluate your debt, but more importantly evaluate the financial legacy you want to create and leave to your family. Then it’s time to DO something about it.
Change Your Mindset
You can begin today to change the way you handle money. You can break free from the trap of consuming today and paying (more) for it tomorrow. We can help you completely turn around your financial strategy.
Here’s what’s always true in a financial strategy: regardless of where you’ve been in the past and where you are with your finances currently, you can take your wealth to the next level by establishing, growing, and accessing your wealth to create assets. It’s time to start efficiently managing your debt and optimizing your potential to not only accumulate wealth, but leave a legacy to your family. Join the masses that have used what we call the Perpetual Wealth Strategy to overcome the trap of “using credit today to create a bleak tomorrow.” You have the ability to take control of the way you build wealth.
Here’s the tip of the iceberg when it comes to advice we have to offer for paying off those pesky credit cards:
- Purchase whole life insurance with a cash addition.
- Borrow the card balances from yourself.
- Pay off your credit cards entirely.
- Pay yourself back and sock away the interest you would have paid.
You can create your own nest egg that you replenish faster than you ever could pay off a credit card with a higher gain then you could ever get with a savings account.
Let us show you even more ways your financial strategy can give you peace of mind. Take a few minutes to learn about the Perpetual Wealth Strategy. It’s our mission to provide you with financial education. We invite you to take 2 minutes to sign up for a FREE, extensive eCourse called Infinite 101®. You’ll receive access to video tutorials, articles, and podcasts. It literally costs you nothing to become educated on this ideal financial strategy and start changing your wealth paradigm!
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Reference: https://mises.org/library/free-lunch-over
