Friday, October 4, 2019

What is wrong with Grandma 's way??

Hi all,

often when friends and co-workers talk about buying things I just can't get my head around how they're able to afford all those things.

Be it that $800 handbag (ridiculous in my view) or the new cars a lot of 20 year old boys and gals drive around in. I always stop and think "how can they afford all those nice things?"

The truth is, that more often than not, they can't! They pay outrageous amounts of interest for the car they drive and they afterpay their way overpriced gadgets like that Gucci belt or the Luise Vuitton (is that even spelled right???) handbag.

Way too many people spend money they don't have to impress people they don't like with stuff they don't need!  

And then there is old Granny who lives a modest lifestyle with the money her small retirement brings in. And yet old Granny has no debts, has cash in the bank (or in her pillowcase) and has paid off the house or unit she lives in!

A lot of people these days inherit a fair bit of money that Pop and Nan have worked their butt off for...
The thing is that future Grandson and Granddaughter might not be so lucky with their inheritance because these days everything is bought with Afterpay, Zip pay, Credit Cards and ultra convenient personal loans and car loans....

In Germany we call this "buying on pump" which basically means that the money gets pumped your way by means of borrowing....

On the upside I think that more and more people are waking up to realize that old Granny isn't that silly after all with the way she handles her financials!

And this is why:

How my generation buys stuff!

-Afterpay (own now pay later)
-Zip pay (own the things you love now and pay them later)
-Credit cards (15%-20% Interest - hell yeah!!!)
-Personal loans (10%-20% interest - hell yeah!!!)

How Grandma buys the things she needs!

-Saving up
-Comparing prices to make sure she gets the most "bang for her buck"
-Buying the things she wants outright (Own now and  pay now!)

I really really like the way our Grandparents work with the money they have. They might not be the most literate when it comes to investing their money wisely and stuff like that, but they sure as hell know how to use their money to get them the things they want!

I have been brought up using the old fashioned way of purchasing the things I want. Never have I been in debt nor have I ever had a loan of any kind!

The thought of buying things I cannot afford is foreign to me!

This is how I buy things!

-I don't buy shit I don't need!
-I don't buy stuff to impress anyone, I do not care what any debt laden wannabe thinks about me when I drive an old car that is mechanically sound but maybe not as shiny as theirs (or the banks for that matter)...
-I do not use any of those Afterpay or equivalent debt traps (designed to lure young people in)
-If I want it but cannot afford it, I won't buy it!
-Before I buy something, say a car or a computer I do my research. I want the best my money can buy. Also I want the things I buy for as cheap as possible! The most bang for my buck!
-I buy most things second hand. Let other people pay crazy prices for brand new cars, accessories and other stuff!

By doing things this way I have a number of advantages:

-I get the high quality stuff at wholesale prices!
-The downside is protected, meaning that if I decide to resell the item, whatever it may be, I am likely to make most or all of my money back. Sometimes I even make a profit!

I am so grateful by having this kind of mentality about money. My parents and grandparents have done a great job! 

How does this sound to you???
Let me know in the comments below or get in touch with me directly (contact tab)

Until next time - be awesome!

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