“Things bought now” is rarely better than “Things bought later”, because “things bought now” costs you forever if you go into debt to purchase them.
It takes discipline to let go of instant pleasure now to avoid a lifetime of pain and interest charges. Many people, especially when confronted with a blizzard of debt marketing, can’t resist.
The tag line has always been “buy now, pay later.” The truth is “buy now, pain later.”
Debt was invented by industrialists so that they can sell more products. When consumers ran out of cash to buy products, industrialists had a problem. How do we sell more products to cashless consumers? Then came “debt.” With consumer debt, industrialists are be able to sell more products to consumers who had no cash. Consumers buy now and pay later.
The industrial machinery was made more efficient by the introduction of marketing. With marketing we are able to sell “appeal and a lifestyle” to the mass of people who ordinarily would not afford. We appetise them to say even though they don’t have cash, they can buy now and pay later (pain later).
If John (who earns like you) can manage to get that luxury car, why can’t you? This is where “keeping up with the Jones” comes from.
With such an efficient industrial machinery, customers stood no chance. Great products, great marketing, banks available to finance you, over time consumers are conveniently brainwashed into believing that debt a normal way of life.
This is good news for industrialists because they get to sell more and make more money.
When you want to buy that luxury sedan and have no cash, no problem, go to the bank, get a loan and get that dream that car. The car maker has partnered with the bank to make it easier for you to get the loan. This therefore means the industrialist (car maker) gets paid in cash, sells more cars and more consumers get into debt.
Industrialists win, consumers pain later.
Resist this temptation. Smart people work at keeping their monthly consumer debt burden to zero. Borrow only for things that go up in value.
Easy to say, hard to do, but worth doing it.