Day 5 of the A to Z Blogging Challenge

According to the British Dictionary the definition of Economics is ‘the social science concerned with the production and consumption of goods and services and the analysis of the commercial activities of a society.’ 

Or to put it in my way, making sure you don’t go broke by buying stuff you can’t afford.

‘It makes sound economic sense’ is a phrase that i have often heard although i will admit to not always adhering to the message.

I’m not going to sit here and preach about what you should or shouldn’t buy, you are the one in control of your purse strings and you are the one who decides whether to open it or keep it shut. But all i am going to ask is that you think before you make that final decision to purchase.

And the only thought that i ask you to consider is the one i mentioned above: Does it make sense?

Particularly if you have to go into debt to be able to afford it.

Look into whether you can afford the repayments. What the interest rate is? How long will you be paying for it? How much will the item have depreciated in value by the time you have paid it off? How much will it cost you in total if you do buy it on credit?

How confident are you that you will still be earning the amount you currently do for the length of the borrowing term?

Will you actually use it? Do you actually need it?

When you have answered these questions, then you will have your answer as to whether it makes sense or not and can make a rational decision whether to sign on the proverbial dotted line, or flash the plastic numerous times, forgetting the purchases almost immediately and then panicking when the bill comes in two months time.

Better still, leave the plastic at home, odds are, if you have to go back to the shop a few days later then the impulse will have passed and more than likely you don’t buy it anyway.

My dad always told me to live within my means. Earn it first and save up for the big stuff. I’m no hero, i didn’t always do as he said and i learnt from my mistakes.

He also told me to always reverse park into a parking space because you never know what pillock will have blocked you in while you were away from your car. I have always listened to that advice and been thankful for it many, many times.

Maybe i should have listened to his economic advice earlier……

And no, Thomas Jefferson wasn’t my dad…

But my dad was my hero…

Have a happy day.

Anita x

Reference

British online dictionary, Economics, Available at http://www.dictionary.com/browse/economics?s=t