The relentless call to consume which seems to be the nature of most contemporary advertising and marketing has led me to pose the question at the head of today’s article.
I was watching the TV last night, and the ad of a well-known retailer came on. Word for word the script of the ad was as follows; “Buy now, pay later, have the goods when you want them”.
Whatever way you choose to spin that, it still means you have to pay! Choosing the pay later option generally means that you don’t have the capacity to pay now. I would argue that if you can’t “pay now” you shouldn’t be buying whatever the item is.
Paying later generally means that you are using money provided by a financier to fund your purchase. The financier does not lend you their money for free. Paying later will almost always mean you are paying more for goods or services than if you are using your own money.
Furthermore, if you fall into the trap of utilising buy now, pay later options for multiple purchases (e.g. fitting out and furnishing your new home) you run the risk of having entered into multiple consumer credit contracts that you have no hope of completing when they fall due.
………….In essence what I am saying here is that you need to be able to distinguish how to live within your means.
Naturally every household has different means (i.e. different levels of monthly income), however we all need to be able to live within the financial means of our own house.
As my headline asks, “Who pays the bills at your house”?
Of course the answer is you. Therefore it makes common sense that the spending commitments you make are based on the income you earn and have a comfortable ongoing capacity to fulfil.
Using credit to “Keep up with the Joneses” is not a sustainable spending strategy.
Falling victim to advertising and marketing that attempts to convince you that you “need” things is not a sustainable spending strategy.
If you feel like you could use some coaching that can assist you to learn how to better manage the monthly budget, live within your means, & help you resist the “spin” involved in modern marketing contact me today on 0407 439 827.
You can also visit www.empowermm.com.au or my Facebook page.