Credit and Maturity

I was talking to Sriram the other day over lunch about this concept and it occurred to me that the concept is valid and worth a mention here. Later on I was reading the book "Rich Dad, Poor Dad" and it added more support to my argument.

As it goes, one of the definitions that describe a 'mature' person is his or her ability to accept a greater delayed gratification over a lesser immediate gratification. In other words, immature people are far more inclined to making impulsive decisions than the mature. I feel that this concept is valid because it highlights the age-defying principles that say that you should work for your rewards and that's the only way you will appreciate it.

But in today's society, something quite contrary is taking place and taking place in a huge manner - the whole credit cards and credit in general. It's allowing people to act impulsively and thereby immaturely and get suckered into the "buy now, pay later" principle. It's inducing whole generations to behave more childishly. It's not surprising then that there are so many of us in the US and soon to be in India are drowing in debt caused by expenses incurred without careful thought and consideration and greatly aided by things like credit cards. What "Rich Dad, Poor Dad" was saying was also simple - spend what you can within the limit of your earnings, which to me is just plain common sense, but this thought seems radical to many today.

I think all of us should also take into consideration this fact and prevent ourselves from buying things excessively on credit. Things like iPods, computers, phones, etc. - the non-essentials are first rate candidates for not buying on credit. Regarding buying a house, a car, etc. I would suggest that you read the book first. I have it if anyone wants to borrow it.

Your thoughts?