I'm amazed by some people when it comes to money.
I just wanted to write briefly about something I think is really important. The difference between what you can pay and what you can afford.
If you spend money thinking that, "yes I can pay for it" chances are that you are thinking about things on a paycheck to paycheck basis.
If you spend money thinking about whether or not you can afford it you probably have more of a plan. Afford is different than pay because afford takes into effect what you are giving up in order to get something.
Pay doesn't take that into consideration.
Smart people realize that you have to take into account whether or not you can afford something. Can you sacrifice going on this vacation over paying for your child's college education?
Or on the flip side, can I afford not to go see my parent who is dying in the hospital? You need to sacrifice by taking out a loan because the time with a loved one is about to come to an end.
Can you afford to take the time to do something? Time is also something we sacrifice when we purchase things some time.
Can you afford to do something is the right question to ask yourself. It shouldn't be that you simply can pay for it.
No comments:
Post a Comment