Saturday, October 1, 2016


I can’t afford it right now, that is the status of my finances as it pertains to a purchase of books I want to buy. Many people I know would purchase the books, with the cash they have on hand for something else or with a credit card.

Quite a few of the people I know make more money and I also know people who make less some receive government assistance. Looking at the people in my world most have far more comfortable lives than I do, they have a greater number of modern things. Forget about purchasing books these individuals, both rich and poor, download ebooks on their newest model smart phone or their laptop, ipad or tablet. I know people who rent cars instead of purchasing them, buy a new one every two years and some who own more vehicles than there are drivers in their home. Where is all the money coming from?

With the advent of credit / debit cards there really is no need to ‘charge it.’  Once upon a time in order to make large purchases without carrying around a lot of cash there was a reason to put something on a credit card. When credit cards first came out people were quick to pay off that debt, now people delay the payments and in some instances the company delays the payment for you. The bank card that can be used as a credit card as long as the purchase amount is what is in your account is a good thing.

Of course some purchases require delayed gratification; you are going to have to wait until you have saved enough money before you can purchase the items. Other purchases such as a new car may cause you to get a car note but the bigger the down payment the less debt you will have to pay back, this is true for mortgages as well. What is important is that a person understands that not everything can be gotten right away.

Christmas is coming and consumers of every income bracket will be tempted with marketing lies. Children will be presented with toys that will make them happy for hours. Adults will be introduced to newer electronics that are must have. The media will show men and women camped out in front of a store for those wonderful “Black Friday” sales which feds the buying frenzy. And the retailers will not let anyone go empty handed because they will finance.

Credit cards, finance companies and banks are not your friend. Their job is to make money when you spend your money- the more money you spend the more money they make. Example:
You purchase a pair of shoes using store credit that offers a 10% interest rate. The total or your expenses is $100. When the bill comes in because of all the other bills you have you decide to pay ten dollars which is actually double the five dollar minimum. This is what your payments look like for the ten months it would have taken you to save the money.
            1                          $100          $10 -         $90
            2                9         $99             $10         $89
            3             8.90         $97.90       $10         $87.90
            4             8.79             $96.69       $10           $86.69
            5               8.67        $95.36        $10            $85.36
            6             8.54        $93.90        $10         $83.90
           7             8.39        $92.29        $10            $82.29
           8            8.23        $90.52        $10         $80.52
           9           8.05        $88.57        $10         $78.57
         10           7.86        $86.13        $10         $76.13

Ten payments of ten dollars each is one hundred dollars yet of the one hundred dollars you paid to the finance company around SEVENTY SIX dollars and payment on your debt was less than $25- give or take a penny. (Imagine what you would be paying with a higher interest rate!)  My point is: You are believing a lie.

Far to many people have been taught to think debt is not a bad thing and that having the newest of anything is a necessity of life. Occasionally we will here of a celebrity who has ran into financial trouble because of a lifestyle he or she thinks she should have. Bankruptcy courts have far to many people seeking mercy from excessive debt. Homes are foreclosed on, cars are repossessed and bill collectors repeatedly call because people believed the lie.

Financial planning begins with not spending money you don’t have. The biggest hurdle most people face is the need for immediate gratification, learning to deny yourself is not always easy. Temptations are always lurking about: a new smart phone comes out at least twice a year, a new feature on the car designed for comfort or safety comes out annually,great vacation packets flash on your television screen and every season there are clothes to buy that you did not have last year. Do not purchase more than what you have the cash to pay for no matter how good the sale, or rational the excuse.

Retailers have instant credit, no money down, buy one get one free and fifty percent off coupons that go along with the additional ten percent off if you open a merchant credit account right away. DON’T DO IT! But the BIGGEST LIAR is the PAY DAY ADVANCE once you fall into that trap it is hard to get out.

You have three months to purchase gifts for Christmas - plan your money and stick to your plan.

And that is the world according to NETTIE xxx Short Stories and essays and other ramblings by Marsha L F Randolph; All rights reserved do not use without the permission of the author Marsha L F Randolph