We often stretch our finances thin to buy stuff we really, really want. A new, bigger TV. A fancier phone. Better clothes. Of course, this habit usually leads to financial trouble, and as money writer Natalie Bacon points out, "it's better to want than to owe". Woman with piggy bank and credit card image from Shutterstock
Quoting podcaster Andy Stanley, Bacon explains that, as tough as it can be to want something you can't afford, it's worse to owe money for something you couldn't afford. Discussing the concept of financial margin, Bacon writes:
Instead of living so close to the edge of your cash flow every month, you should say "no" to more spending and give yourself more financial margin...Wouldn't it be nice if things weren't so tight every month? Creating financial margin isn't easy — but whatever you can do to help yourself to get closer to financial freedom, you should do...
If you have to go into debt to buy something then you shouldn't buy it. Why? Because it's better to want than to owe.
Of course, there's something to be said for doing what works for you. Generally, though, most of us need more margin in our lives. Stretching your budget thin to buy something reduces your financial margin, and getting into debt destroys it altogether.
It's a solid mantra to remember next time you're tempted to spend. For tips on how to keep your spending in check, head to Bacon's full post at the link below.
It's Better to Want Than to Owe [FinanceGirl]