Now and Later

I hate Now and Laters.  They’re like sadistic Starbursts.  They look soft and chewy but they’re hard as a rock.  Taste delicious though…

Anyhow…

One of the good things about this difficult financial time is that I know it’ll pay off in the long run.  It’s not about living paycheck to paycheck, it’s about making a sacrifice now for a payoff in the future.  Careful financial planning can definitely pay off.

I didn’t need to buy a house right now.  I could have easily lived in my apartment a couple more years, which would be financially beneficial in the short run, but detrimental in the long run.  That money I’d spend on rent I’ll never see again, and I’ll have nothing to show for it.  On top of that, the first-time home-buyer’s credit was this year only, so combined with the rent, staying another year in the apartment would have cost me $16,000.  That’s money I’ll never see again.

I didn’t need to buy a new furnace right away.  After some tinkering, we got it to work somewhat.  It likely could have kept us warm the rest of the winter, and we could have saved up for a nice new furnace and bought it next year when money would be less tight.  However, I would spend the winter with a low-efficiency furnace, which will make my utility bills a lot higher than they’d be otherwise.  Combine that with the tax credit available this year for getting a high-efficiency furnace, and it nearly pays for itself in the first year.

I didn’t need to overpay my mortgage these last couple months.  I probably could have really used that extra money, we could definitely have gone out a few times, and maybe I wouldn’t be having a $0.62 can of Spaghettios for lunch every day.  But I compared my statements, and it looks like overpaying by just a few hundred dollars these last two months knocked the equivelent of six months out.  Interest is a killer, and that few extra hundred saved me several thousand dollars.

It’s really given me something to think about, and also makes me a lot happier as I sit here at my desk eating Spaghettios with a plastic spoon.

The reason I mention all this is for my younger readers (if they exist), who might just be starting to head out on their own.  It’s too easy to dive headfirst into things and only think about the here and now.  By making choices with some forethought, you can avoid a lot of hardship in the long run and come out on top.

Zel-kun out.