The quickest way to get rich is to stop buying things you don’t need. I am not mean, Uncle Scooby is fair. If I could prove to you that you did not need your Black Friday purchases would you agree to return them and use that money to pay down your credit card debt (if you have it) or put that money into savings? If so, read on.
Need vs Want
Lets say I am a carpenter and my hammer breaks. Do I wait for a really good sale to buy the hammer or do I just buy one that same day? Of course you don’t wait for a sale because you cannot make a living without your hammer, you NEED it so you run out and buy one immediately. If you can wait till something goes on sale, clearly you do not NEED it because you have already done fine without it waiting for the sale! You have not lost your job because you dont have it. You have not gone to jail because you dont have it. You WANT it, you dont need it. By definition, everything that people buy on Black Friday are things they really don’t need. OK, point proven so now please hold up your end of the bargain and RETURN THOSE BLACK FRIDAY PURCHASES! 🙂
The Evils of Credit Card Debt
Its the morning after and many got caught in the Black Friday Buying Frenzy and purchased stuff they didn’t really need and couldn’t afford. The Average American has $10,955 in credit card debt. The average consumer pays 15% interest on their credit card debt but many are paying the max allowable interest rate which is 21%. This means the average American is wasting $1650 per year on credit card interest! If you are like the Average American then getting rich quick is easy, simply return all your black friday purchases! You will earn a guaranteed 15% on that investment and that is higher interest rate than even millionaires are able to get with their high paid advisors! So load all that stuff you bought into your car and take it back and return it, its the best investment you will ever make! Paying 15% to 21% interest at a time when a fair market interest rate is 2-4% is just insane and is without question the fastest way to financial ruin. Pay off your credit card debt!
Benefits of Delayed Gratification
I work hard all year -I deserve a treat! So you have no credit card debt and have a little in your savings so you think you deserve a treat at Black Friday because you work so hard all year. Great, congratulations on avoiding credit card debt – now lets talk about the benefits of delayed gratification. If I offered a big pile of 10 year old computers and old playstations OR $20,000 in cash, which would you take? Of course the $20,000 cash!
Lets say that every black friday for a dozen years you treat yourself to $1500 worth of electronics. At the end of that 12 years what do you have? A big pile of outdated electronics worth nothing. Now lets say that instead you save that $1500 per year for that 12 years, what would you have? $20,000 to use on the down payment for a house. You said you wanted the $20,000 cash but insted you actually chose the worthless pile of electronics! RETURN THOSE BLACK FRIDAY PURCHASES!
If you want to play around with interest rates, number of years, and yearly savings, check out this online calculator to see what your nest egg will be worth.