So, I’m curious. Who has a credit card or a savings account here? Personally I just have a credit card just for the means of building up credit because that’s something that I know is important since I was 16 when I opened up the account. At the time I worked at McDonalds & I had this manager who was giving me financial advice that I took to heart & listened to her. I opened up the account & never actually spent more money than I ever needed to. I did as she told me even to this day. I use the card only to buy gas & my monthly subscriptions. It comes out to less than half a week of working time to pay off for the month. I’ve never been in enough debt to the point where I couldn’t pay it off but many American’s can’t say the same thing unfortunately.
When you use a credit card it’s used like this. The money comes from the bank, not your checking account with the money that you own. The bank is loaning you that money in hopes of you paying that money back to them with an interest rate. Again, credit cards do not use your money, they use the bank's money. That’s how you can spend more money than you have & it’s a bad thing for you to be in debt if you cannot pay it back. Being in debt is like having your future time taken away from you. Like having time reduced from your life because the mentality is that you have to pay it back to the bank with your time from working your job. It’s sad & it’s how the banks make their money.
On the contrary savings is the opposite of debt. Having more money in your account & being debt free gives you that sense of comfort that if something were to happen like losing a job, a car, or home in a disaster it can be solved a little bit easier than if you were in debt & couldn’t afford any down payments. Having savings locked up & not spending it is like having future vacation time in which you could retire early & enjoy more out of life instead of taking a back breaking job at 70 years old. Believe me I’ve seen this & worked with these types of people when I worked at a grocery store. It’s sad to see a dick like Chuck working a 73 year old woman 60 hours a week.
Having savings saved up makes so you could be at ease without worries to enjoy more out of life. If it weren't for Covid & the Riots2020 going on I would take a vacation to visit friends who live across the country. Everything is closed I cannot do that sadly. However, the good thing is I have more time to work to accumulate more money for future ‘vacation’ time. With this time spent working now, it will give me the enjoyment of life later. It’ll be worth it.
So I’m curious now. Which category do you fit under? If you’re comfortable sharing, are you the one in debt? If so, why are you in debt? Did you buy that lambo yet? Did you go to school? Did you buy a house? Did you just go on a spending spree buying a whole bunch of materialistic merchandise just for your own gratification?
Are you the kind of person who likes to save their money in case something unexpected comes up that needs to be paid for? This happened to me last year. My A/C, washer, dryer broke down & I had a basement leak when it rained. I’m happy that I had the money to get these fixed without going into debt. 40% of Americans could not carry out an unexpected $400 expense. There could be countless reasons for this. I hope we can all learn to be financially stable. This is the reason I’m learning economics & blockchain in my free time. I do not think that this is a waste of my time at all, in fact one day all this time spent learning will definitely pay off for itself. This knowledge is incredibly valuable to me.
How does your time & savings fit into your life? Please let me know in the comments below, strike up a conversation, I’d like to hear opinions. This is how we learn.