August 19, 2013
One can avoid debt by avoiding the “monthly payment mentality.” What is the monthly payment mentality?
One can avoid debt by avoiding the “monthly payment mentality.” What is the monthly payment mentality?
The “monthly payment mentality” is that little red devil that whispers in your ear and pushes you into a purchase that you most likely can not really afford. A person with this mentality will only consider his or her ability to make the monthly payment and not the overall cost of the item, especially the interest rate.
Great answer, Gary. You hit the nail on the head. Products are marketed to consumers using the monthly payment approach. This works very well for the business, but not so well for the consumer. The smart consumer that gradually builds wealth over time rids themselves of this type of thinking and that means ridding themselves of the debt. This will open up for opportunities to save and invest one’s money wisely and efficiently.