posted 1 year ago
Something Ra said really resonated with me. It is about insurance and being self made ready in case of a disaster. When we buy 'insurance', what we really buy is convenience, and we pay and pay through the nose for it: The convenience of not having to pay at the time when we get sick or the washer takes a dump. Convenience is also when we buy those horrible TV dinners [but don't we pay for them *also* with bad nutrition?]
I feel that insurance is a racket. Sure health is so expensive that you pretty much have to have it: One week in the hospital could bankrupt many of us. Car insurance is mandated in case we drive poorly and injure someone. Life insurance is a nice thing to leave to our children if you have a little extra...
So what happens when we buy insurance, any insurance?
We start paying premiums, and those premiums come due every month, with depressing regularity, whether we have an accident or not, whether we get sick or not, whether the house floods or burns down... or not. We pay them for month upon month, year upon year. My husband has never had an accident. I've had mostly slow moving ones, with no one hurt, but we've always had insurance.
So what did those premiums buy besides peace of mind, perhaps. Well, the insurance agents' salary/ wages for one, his kid's braces, his daughter 's college tuition, his car, his insurance policies, his TV dinners, his trips to Disney land.
I wish them no ill, mind you, everyone has to make a living and in their own way, they are performing a service. The living they make is totally parasitic, however.
Another is buying on credit. There too, you buy convenience. The convenience of not having to pay immediately. However, you still have to pay the whole sum +++ interests. If you buy on credit, you also pay interest on that purchase, so you end up paying more than if you had paid the whole sum at the time, and that money could have been making babies in your bank on YOUR account. When they sell cars, they don't even bother to write down how much more you will end up paying altogether. But they dazzle you with "This car can be yours for $? a month". Yes, but if you have to pay for 60 months, that is quite a pile of extra dough that you will pay for the convenience.
I realized early that I would always need a car, but I never financed one. My first one was bought with a share certificate I redeemed [a very long time ago] plus some savings. As soon as I drove the car out of the lot, I started saving for the next car.
My mom showed me her system: Every month, she would make 4 envelopes and in each one, enough money to buy what was needed for the week. At the end of the week, when she had money left, she would roll it in the next envelope or put in in the savings. A car should last you 10 years. Dad made them last 15, and in 15 years, $10 here, $50 there really adds up. When that car was on its last leg, so to speak, they had the time to find the best car available that they could afford and pay cash. I did the same thing when I came here. You should have seen the look on the salesman's face when I'd tell him I would not finance. The sad look on their face at all that extra money they would not get out of me.
And don't think that I ever felt deprived. We went on vacation, ate out once in a while. Mom used to say: "It is not the expensive, good quality stuff that ruins you. It is bad little habits, like the daily sweets you don't need, stopping at a tavern on your way home. You can piss that money away and not realize it's gone until you need it".
Now, I don't seek to malign folks who buy stuff on credit. Once in a while, the car get totaled, you have a serious injury/ illness and you need money you just don't have, but if you think about it, buying on credit *all the time* is really not necessary, and a person may be courting disasters in getting over extended. "A bad thing never comes alone as we say in French".
$10.00 is a donation. $1,000 is an investment, $1,000,000 is a purchase.