Stop Robbing Your Future Wealth

One of the hardest things for many people to see in relation to their finances is how their actions today are robbing them of future wealth. It’s easy to focus on today and think that if you can make the payments on that living room set that it’s okay. It’s easy to think that borrowing from your home equity to fund a kitchen remodel is a great idea. These are all things you want today and the future seems so far away. You figure there will be time to make up the difference, or that just this one little payment won’t hurt your future. The thing is, every time you borrow money you are robbing yourself of future wealth. You’re committing future dollars to pay for t

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3 Responses to Stop Robbing Your Future Wealth

  1. Debbie M says:

    Two points.

    1) Without knowing all the facts, you can’t always say which debts will increase future wealth. For example, my kitchen remodel might increase my future wealth (haven’t done the math since I don’t intend to take out a loan for it) because finally having a dishwasher will make it so much more fun to cook my own food at home.

    2) I think the reason a home can be a good thing to go into debt for is not because it will (probably) go up in value but because it will eventually get paid off. Paying only taxes, insurance, and maintenance will (probably) be cheaper than paying rent.

  2. 20 and Engaged says:

    It’s important to keep your financial future in mind. I know a few older people who don’t really have the luxury to retire (even though they’re at retirement age) because of the mistakes they made when they were younger. I’m definitely looking to learn from their mistakes.

  3. Nate says:

    At the same time, you want to enjoy the present and not always be worrying about the future. Though that enjoyment doesn’t need to cost (much) money.

    But yes people spend their money on stupid things like expensive cars, which only add the slightest improvement to their quality of life. There are much more fulfilling things to spend that kind of money on…or you could just save that money for a rainy day or for your kid’s education so they don’t have to start their life in the same cycle of perpetual debt that burdens you and eats up most if not all of your paycheck.

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