The other day, my toddler son and I were watching his favourite cartoon on tv. In this cartoon the title character really wanted a new pair of work gloves. These new work gloves had better features than the current gloves he had. His colleagues just told him to go out and buy the new gloves, but he insisted that the new work gloves were expensive and that the gloves he has are just fine. He relied on the want versus need principle. He really wanted the gloves, but realized he didn’t need them so he didn’t make the purchase.
How many times have we purchased something just because we want it? The want versus need factor is even more important if you are buying what you want on credit and paying for it over time. As a Windsor bankruptcy trustee I see people everyday who have multiple credit cards each at their credit limit (I recently met a couple with 23 cards!). It makes me wonder how much of those charges were just “want” purchases.
If you want something, then set aside a bit of money each paycheque for the special purchase. Then, when you have enough to pay cash for it, you can buy it. If you can’t afford to set the money aside each paycheque then you really need to sit down and review your budget.
If you have multiple credit cards and are just taking a cash advance from one to pay the other, you need to sit down with someone to discuss your finances. There are options available to help you. Maybe credit counseling is the best option, or perhaps you need the protection of a consumer proposal or bankruptcy.
But first make the call to 310-PLAN and lets work on a plan that is right for you.
About Rebecca MartynRebecca Martyn is a bankruptcy trustee and consumer proposal administrator responsible for the Hoyes, Michalos & Associates office in Windsor, Ontario.
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