Skip to main content

Control is not a dirty word

So many people get hung up on the idea of control. We have gotten to the point where it has become a bit of a dirty word. I hear about modern t.v. therapists describing people as control-freaks. What does all of this mean? Is control such a bad thing? Self-control?

What is the answer? I don't think that being in control is a bad thing. But, in this day and age, many of us have come to realize that control is not a good thing when you are not the one with it, that is, when you are out of control.

For me, it became really clear recently. I was out of control. And I needed to take control back. Was some of this in my head? Sure. Did that make it any less real? No. Financially, I was not in trouble. Did my partner and I have some debt? Sure. Was that a big deal? Not really. So what was the problem?

Over a short period of time, I was able to put up with almost anything. But, it became clear to me, that due to the current monthly strategy we had, we were spending a large amount of money on interest for our credit cards. And this, while we were putting money in a savings account. And doing the current thing, it would take 32 months for us to pay off the credit cards. And that was not even counting our combined student loan debt or mortgage etc.

This was insane. So, to jump start the process, I took money from the savings and paid off one of the cards. The more expensive one. This, only after we had both agreed to not use them anymore. This was not a big deal since we had not used them in about 6 months.

That being said, the goal is to pay off the credit cards first. Thereby freeing up the 100 dollars in payment and earning 26 dollars per month by not having to pay it to the credit card company.

When you use credit cards, you are giving someone else control. It is typically harmless and mindless at first, but for a simple amount of say 2400 dollars (not much when charging items over time), you give up control for three years. Is it really worth it? It wasn't for me.

For me and my partner, the fix has been to retrain the mind. Delayed gratification is the big thing. That is the concept that when you want something, you should save for it and only purchase it when you can buy it with cash.

Comments

Popular posts from this blog

On Buying a Lifestyle...with a Fixed-Rate Mortgage

Despite all of the back and forth about sub-prime mortgages and the housing bubble, I am feeling just fine. The reason is that when purchasing, I followed some old advice: Don't expect to flip. In general, I've been told by many people that you shouldn't buy a home unless you plan to hold on to it for 7 years or longer. If the market does well and you decide to sell, fine. But if you want to be sure not to lose money, don't buy something that you only want for a year or two. I've been in my current location for more than 3 years. I like it. And I have no intention of leaving in the short or medium term. It seems to me, that real estate, like any asset class, has its ups and downs. But as a practical point, I don't look at my home as an asset per se. Rather, I consider it to be a fixed expense that I need to survive, much like food and water. Therefore, as long as the payment is reasonable and it functions to keep me warm and sheltered and comfortable, that is a...

Do Better With Your Time

Recently, I've been extremely busy with some work commitments. The interesting thing for me is that this increased work activity has really helped crystallize some of my feelings with regard to time. And these ideas are a critical part about my view on personal finance. I'm curious to know if others feel similarly. Time is money. That is, Time, in some way, contains energy. Money, is also energy. In the act of working, I am able to compound and increase the amount of money that I have. I am exchanging my time and effort and thought which are components of my work, for the productivity that I produce. And this production gets me money from my employer. However, the first dollars that I make each day, week, or month are the most valuable. Then the ones that I make at the end are the most valuable. (Forget about taxes for a minute.) The reason is, the first ones help me have a place to live and food to eat. And the last ones are the ones that I can use to really improve my life lo...

Quantitative Easing Round Three

It appears that we have another round of Quantitative Easing in the works. If you've been listening to any of the money shows over the past several months, you'll note that most of the major players were not anticipating that! However, a recent update from the Bernanke indicates that the possibility of Quantitative Easing Round Three (QE3) is a very real one....but not in the near term. This article from International Business Times does a good job of explaining the thought process around a possible QE3 and why the timing is not likely to be now. All that being said, the CPI is up and the price of energy is skyrocketing. It is not an easy thing for people to get to work in cars that are not efficient. However, that is not stopping people from certain segments of the political/media spectrum from announcing dirty secrets about Clean Energy . I find that Google News has a great mix of stories from all over and this story -- the increased energy costs is certainly one to watc...