Last week I got a chance to go home to Ireland and spend a few days with my mam and dad. My mother is a veritable treasure trove of one liners, quips and homespun wisdom. So in talking about a purchase she'd made in the past, she made a statement that the price of what she purchased was $7K but the cost was $9K. She had automatically calculated the interest and her mindset was the purchase she’d made she referred to as the fully burdened cost.

It hit me like a ton of bricks.

If only I could get all the people I train to think like that. Just imagine if every time you purchased something on credit that you translated the monthly payment – interest included – into the overall price you paid. Not only would this make you think twice about the true cost of what you were buying,  it would also give you a sense of the total expense you’d already committed to. So next time you finance something – which is just fine to do by the way – make sure to count the whole cost in your plan. And if the purchase represents significant value to you, then by all means go ahead and do it.

As mam always says, “Make every penny a prisoner!” In times like these it’s good advice for all of us.

It’s a good life!

Brian