Layaway and Store Credit Card VS Putting away Money in Savings

People sometimes use Layaway or credits not only for programmed shopping, but to store a product on sale or at reduced price, but as months go by, if they don’t pay in full, the interest charged is so high that those sales and discounts become more expensive than if they only purchased the essentials at regular price.

“Something similar happens when a person, eager to seize a discount, buys clothes. Since standard sizes are snatched away quickly, maybe they like an item that is too small for them, but it's so pretty and at such a good price, and besides their New Year’s resolution is to lose weight, so they buy it and of course it never fits. Few people pay the painful price of saving as well as few people pay the price of exercising and getting on a diet, and this cheap clothes that pile in the closet with all the others, really turns out to be very expensive. 

-          If a person was not taught to save when they were little, can't they form the habit when they have grown?

-          Not only can they form it – replied Mom – it is essential that they do. I can assure you that a person is able to do whatever he or she set their mind on, but it is really necessary that they wish to do it, that they set clear goals based on effort, work and will. But, mostly, that they have great love for themselves, for their family and the old person that they will be some day, because they won't want to be a burden to their children if they live for a long time nor will they want to depend on someone if case they become incapacitated.

-          And how can they start? – I asked

-          You have occasionally known – said Dad – about companies that downsize. Employees, out of fear for losing their jobs, through a union declare that they rather have a pay cut and are obliged to adjust their expenses. In the same way, you could suppose there was a cut and adjust your payments. When a scared person asks me what would happen if after a while they could no longer save due to the loss of their job, I return the question without a flinch.

“Let’s suppose that right now your chief of staff informs you that you have to pick up your severance check because it’s your last day working at that company. How will you pay your expenses programmed for the end on the month?

“And they automatically answer: ‘I'll go out looking for a new job tomorrow. They realize themselves that there is no real obstacle.