“He who will not economize will have to agonize.” – Confucius
Once
upon a time, we saved for the things we wanted to buy and bought
them once we could afford them. However, over the past few
decades, we have seen a dramatic increase in the use
of credits cards, personal loans, and home equity loans, allowing
us to borrow money for purchases we could not otherwise afford to
make. The latest iteration of this trend is the rapid
growth of the Buy Now, Pay Later
(BNPL) loan industry.
Regularly borrowing
significant money to pay for something that depreciates, such as
a car, furniture, or a vacation, can pull people into
a perpetual cycle of debt.
Living within your
means, on the other hand, has many benefits. It helps you
learn to be content in the present, allows you to buy things
without having to borrow money, and, perhaps most importantly, gives
you the ability to survive an unexpected setback or emergency.
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