Financing a Lifestyle
Society tells us that we should live a certain way. It seems like the media is the scapegoat for many of society's bad habits, but many people imitate what they see on television whether it's conscious or unconscious. If you see your favorite television or movie actor/actress driving an Acura while talking on their iPhone, you want to do it too.
The problem with imitating what we see on television and in magazines is that most people can't afford to live that kind of lifestyle. Instead of realizing they can't afford it and striving to afford it, the "right now" mentality that many people have causes them to use credit and loans to obtain the lifestyle they desire. This is where the problem starts.
If you have to use credit to obtain a lifestyle, you will also have to use credit to maintain that lifestyle. Unless you drastically increase your income, you will not be able to play catch up while continuing to live a luxurious life. Many people incur a large amount of debt people incur just to purchase consumable goods like clothes, food, shoes, and transportation.
Most of these consumable goods begin to lose value immediately after they've been purchased. You couldn't even sell them to repay the debt incurred to pay for them. What's worse is that in a few years, you might not even use these items, yet you continue to receive a bill for them each month. Considering interest charges, you could end up paying over a thousand dollars for a hundred dollar purchase.
Debt keeps you from saving money. Chances are, if you're using debt to pay for your lifestyle, you aren't putting any money toward savings. What's going to happen in the case of an emergency, if you lose your job tomorrow? Would you be able to survive? You can't depend on your credit cards, especially if they've been maxed out on clothes and shoes. Depending on your debt load, you might not be able to apply for a loan or credit card to help you out of the situation.
A lifestyle supported by debt is not a healthy one. You can only live beyond your means for a short period of time. Living a life that's debt-free doesn't mean you'll be completely free of worries, but at least you won't owe money to anyone.
