If you have Rp 209,000,000 right now, and somebody offers to give you:
- Samsung Galaxy Note II (Rp 7,499,000) NOW
- Rp 8,300,000 ONE YEAR LATER
Which one would you choose?
These kinds of advertisements and offers from financial institutions can be very tempting. Since you have the money in the bank anyway, why don’t you delay using it for one year and in exchange you get a gadget of your choice? You are still earning a small interest on your money too.
When you start calculating the interest or return that you can make by putting the same amount of money in term deposit or other investment, then you can see that you would end up paying more for the gadget. However, most people can’t be bothered calculating the future value of their money, so they won’t realize this.
So when you are making a money decision;
Do you gravitate towards INSTANT or DELAYED GRATIFICATION?
Do you want to have something NOW or have more money LATER?
We all wish we can have something now and also have more money later, but it does not work that way. What we enjoy now, will cost us something in the future. Choose wisely!
Learn and Grow!
Inge Santoso, B. Com, CFP®