Credit allows us to live in the short term, as if the cookie jar were bottomless.
When credit dries up, the only available options are so devastating that many people face personal bankruptcy, severely strained marriages, wrecked retirements, and ruined financial lives. Assets must be liquidated, children removed from private schools, houses and cars sold, and life-styles adjusted, many times in a dramatic and difficult fashion.
What’s the solution? Remember to follow the basics of Grandma’s cookie jar. Never allow your outgo to exceed your income, and plan your cookie eating so that you can stretch your enjoyment over a longer period.
The world is bent on telling you that you can have everything NOW. Of course, it’s okay to have a cookie now and then, especially if you feel that you’re missing out. Just remember that it’s our obligation to resist the urge to overindulge through proper long range planning and a steady focus on your long term plans for financial independence.
Photo by kellypuffs