April 27th 2021 - Debt Is an Evil Companion

People in my part of the world have, or at least used to have, a saying “Dug je zao drug” (or “Debt is an evil companion” in English).

The old folk wisdom behind it recognises that living with debt is very unpleasant situation that should be avoided whenever possible. And the most prudent of avoiding such situation is following the very simple principle of living within your means. In other words, people should avoid spending that they can’t afford.

Unfortunately, unlike the old days, this simple principle is difficult to achieve due to prevalent culture of consumerism, which is encouraged through popular culture which celebrates hedonism, government that want income through indirect taxes and, last but not least, banks and credit card companies that tend to profit the most when people lack basic financial self-discipline. Being frugal is extremely difficult when you are subjected through various forms of social pressure that require spending, whether it is simple concept of “keeping up with the Joneses” or trying to spare your child of ridicule that will come with insufficiently expensive brands of clothing. On the other hand, old and simple concept of “saving for a rainy day” was discouraged with low (and nowadays negative) interest rates and inflation that would ultimately eat your savings away.

Ironically, COVID-19 and lockdowns might very well do more to resurrect old style frugality. With bars, night clubs, restaurants closed and basic social contact limited or suppressed with draconian measures, the need to show off would ultimately begin to disappear. And the impulse to save money you can’t spend in store will probably find its ultimate impression in cryptocurrency investments.

Blog in Croatian https://draxblog.com
Blog in English https://draxreview.wordpress.com/ Original Hive blog (Film & TV) https://hive.blog/@drax
Minds profile https://www.minds.com/drax_rp_nc
Uptrennd profile https://www.uptrennd.com/user/MTYzNA

Hiveonboard: https://hiveonboard.com?ref=drax
Rising Star game: https://www.risingstargame.com?referrer=drax
1Inch: https://1inch.exchange/#/r/0x83823d8CCB74F828148258BB4457642124b1328e

BTC donations: 1EWxiMiP6iiG9rger3NuUSd6HByaxQWafG ETH donations: 0xB305F144323b99e6f8b1d66f5D7DE78B498C32A7

Posted Using LeoFinance ^Beta