I just heard on the radio the latest advert for the GE Money Personal Loan. It claims to give you more money to enjoy the things that matter.
A lovely marketing tug on your emotions but total B.S.!
After you’ve blown the loan amount you’ll have lots of interest to repay – at a rate not much lower than credit cards. So a personal loan such as this will actually give you LESS money to enjoy the things that matter (for a long time).
Save for the significant. Minimise the insignificant.
If you really want to ensure you have enough money for those things that really matter to you follow this process:
- Identify those things that matter most
- Work out how much money you need for them, and when you’ll need it.
- Establish automated saving and cash flow management plans to ensure that money is there when those things that matter occur.
- Enjoy life with the peace of mind you’ll have the money to enjoy what really matters most.
- If there is any money left over you can spend it on insignificant things suchs as impulses and indulgences.
If you need a personal loan (or credit card) to fund experiences and items that matter to you take it as screaming alarm bells that your cash flow control is on fire. Run away from the lenders and towards a financial counsellor or decent financial planner.