The inability to defer gratification may be the single
most significant cause of financial failure!
Debt is paying, over time, for a benefit already received. In some
cases, acquiring debt is a realistic way of satisfying our needs.
Let’s look at some examples of practical reasons for debt:
- Having our own home provides a feeling of security and belonging to
the community. It can take a lifetime of earnings to pay for a home, so
a mortgage is a practical method for satisfying this need.
- In our mobile society, transportation is an essential. We need transportation
to work before we can earn income. Again, short-term borrowing may become
the practical solution.
- A good education is required for maximizing our earning potential.
To get that education, the cost of borrowing may be an investment in the
future.
