I ran across this TED talk video the other day; Why 2.5 billion heartbeats might change the way you think about money: Preet Banerjee at TEDxUTSC.

While some of the numbers are not realistic today, the concepts are very much so. My favorite quote is “Think of borrowing money today as negotiating a pay cut with your future self. Will your future self like that idea?”

There are a couple of other ideas I like in this talk. One, It is interesting that those with maxed out credit can live within a budget, after they reach their credit limit. It is only the external force of not having available credit that keeps them from spending more. Doing so, is very expensive. We need to think how we can better control our spending without the cost of debt. Secondly, it is interesting to think about a lifetime of income and expenses. This helps us consider which is the better road to travel.

As one of my guiding money principles states, “Debt can be dangerous.” While it can be dangerous, it is certainly more expensive. Immediate gratification is more costly.

Dan