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Is Plastic Making You Happier?
If you're like most people, you probably own at least one.
And like most people, you've maybe never thought what it's
really costing you?
At a recent conference held by the Fabian Society at London's
Imperial college, one of the issues discussed was happiness, and,
more specifically, why it seems to elude so many of us.
One of the conclusions reached was that one of the greatest
causes of unhappiness in the last 50 years has been people's
constant desire to raise their level of material wealth
(especially in relation to others who have more).
As one speaker noted, 'We're like children on a rainy Sunday
afternoon, impossible to please. We have everything and
nothing.'
You may disagree, but I can't think of a worse modern symbol
of this constant craving than the credit card.
Yes, I know, they might seem a godsend when payday isn't for
another week and a half. Having 'free' money can be a fantastic
thing...if you manage to pay it back on time that is...
If you're like a great many, though, and only managing to make
that minimum monthly repayment, here are 4 things to think about
the next time you reach for that piece of plastic?
1 It's very expensive!
2% interest a month may sound like peanuts but that equates to
24% per year. Let's imagine, like me, you lived in the UK, and
had an average balance of £8000 on your card... that would
mean you were paying £160 a month interest. On the national
average salary, that's almost a week's work!
2 It's not your money
You're actually paying someone else for the privilege of
making you poorer! That hard-earned cash should be in your
pocket, not some lender's. How can you remain solvent if you're
continually spending money you don't have?
3 Money burns a hole in your pocket
If you're like me, I can bet you've met or know loads of
people who always seem to have too much month left at the end of
the money. Yet, I'll bet you if they earned double or even treble
their income, they would still find some way to squander it. It
seems to be in our nature somehow.
We've all seen those quiz shows where the contestants win big
money. What's the first question they're asked? Yep, that's
right, 'How are you going to spend it?' I don't recall many
replying they would wisely invest it for their retirement.
4 You spend what you don't have
Credit cards give you the illusion of being wealthy. Let's
face it, if you were handing over a 1000 dollars instead of that
little piece of plastic, you might just stop and have a quick
rethink.
It used to be the case that Gold cards (those ones with the
massive spending limits) were the preserve of the wealthy, but
the banks weren't too long in realizing that if they gave these
out to everyone, they would simply go ahead and spend as if they
were wealthy. We seem to prefer illusion to reality, somehow.
Way back in the sixties, a French philosopher called Jean-Paul
Sartre came up with a concept he called the Practico Inert.
Fancy terminology aside, he was trying to explain in a
nutshell how humans almost always (and without realizing it)
become prisoners of their own creations.
He used the example of Chinese peasants who needed wood in
order to provide fuel and building materials for themselves. The
long-term effect, though, was that the continual loss of trees
needed for wood gradually exposed their land to flooding and
drought.
Likewise, in our modern world, the credit card creates a
short-term illusion of freedom and control, but in reality, only
makes you poorer and increases your dependency on others.
So next time you're tempted to reach for that piece of
plastic, stop for a second and have a think about it's true worth
to you.
Is it really making you any happier, or like so many others,
could it be seriously damaging your wealth?
About The Author
Colin Mc Caig is dedicated to helping others become debt fr#ee
and start their own home-based business. Get his fr#ee 6-part
mini-course. Learn the powerful secrets to becoming debt-free
using only the money you have today. Send a blank email to:
mailto:colindebtfre@demandmail.com
MORE RESOURCES:
Credit - Google News
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