Every time you borrow money, you’re robbing your future self. —Nathan W. Morris
Borrowing money for consumption is a widespread disease in today’s world, fueled by excess and materialism. Unlike taking on a business loan to achieve a return on investment that is higher than the interest rate — a practice that, when done wisely, can enrich your future self — consumer loans only serve to satisfy the desire for instant gratification, while robbing (sometimes spectacularly) your future self.
Each time you’re thinking about getting a loan to satisfy a desire to own an item that belongs in the “want” category, imagine that you have the power to stop your past self from getting all the consumer loans you have today (if you don’t have any, pretend that you do). Just like that, you can erase all of them and finally gain peace of mind. Would you still go into debt to finance your toys?
Five years from now, you’ll look back at your past self, puzzled at how short-sighted you were to gift yourself with such a bad future for the fleeting gratification of getting a new car or TV.
“But I can get such great terms, it’s almost a free loan!” you’re saying? The terms don’t matter;the habit of prioritizing your present self over your future self eventually affects not only your finances, but every other area of your life. Developing discipline to do without unnecessary feel-good purchases you can’t afford is one of the most important things you can do to gain more self-control and ensure that your future is better than the present.