Three ways to buy things

We all love to buy things. Not many activities give us more pleasure than the buying things. However there are good and not so good ways to buy thing.


The best way to buy something is when our assets fund our purchases, for e.g. the interest earned from our fixed deposit is used to buy something.

The desirable way to buy something is when we save for many months to buy something we had been wanting for long. This is oldest way to buy things, employed by our previous generation when there were no credit cards.

The avoidable way to buy something is when we don't have the money it. We take on loans use the credit  to  fund our purchase. We buy in an instant by swiping our card but spend months repaying the loan. This is the most popular way to buy things these days

For the good health of our personal finances the avoidable way to buying things is something we need to stay away from.