It seems to be almost a daily occurrence that a company rolls out a new product which gets us what we want faster than ever before. Most of us can have groceries delivered to our door (at a price of course). Some of us can get same-day delivery of any household item we might be shopping for.
I saw a commercial for a grocery store that would even come to your home and put the food in your refrigerator. Now that seems a bit too much.
But I would argue that this is the result of a capitalistic society responding to the wishes of the consumer and is generally a positive development. Businesses adapt to what consumers want and this increases profit for their stockholders.
However, this desire for everything now can threaten our long-term financial health. The culprit? Our desire for immediate gratification plus a little piece of plastic that will give us what we want now.
Credit cards are just a tool. For those who can handle the convenience, credit cards are beneficial in many ways. But they are deadly if we don't manage our impulse purchases.
So what are some solutions?
1. Understand that compound interest can work for you or against you. It's a powerful concept.
2. Cut up the cards if they present a problem. Or put them away, so set up some kind of rule for when you will use your card.
3. If possible, find the triggers which cause you the most problems. It could be a certain store, or a habit of shopping at night online, or being with certain people or in certain places. Think about how you can manage these triggers.
4. Think of balance. Delayed gratification is the key for all of us who were not born wealthy. But life is uncertain, so there has to be balance with knowing when to save and when to spend. If you have a plan and know you are staying on track, spend a little. You don't have to say "no" to yourself all the time if you are following your plan.
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