Finances in a Panic
You never know when something might happen that can throw you into a panic and make you think irrationally about your finances. For example, when a relative in another state goes into the hospital your first instinct might be to hop online and purchase whatever airline ticket can get you to your relative as quickly as possible. You probably figure that any last minute ticket is going to cost you an arm and a leg, and since you’re already panicked over the situation you’re in no mood to do any comparison shopping.
Situations that cause alarm and panic are prime situations when most people make bad financial decisions. Instead of thinking through something logically and taking the time to make sure you’re getting the best deal possible, you jump right in and make your purchase and wind up spending entirely too much money.
It’s important to keep a level head, even when dealing with an emergency situation. Don’t forget about the eventual outcome of a situation. If you charge seven hundred dollars onto your credit card for an airplane ticket to get you out to see your ailing relative - even though the same ticket would only cost you three hundred dollars if you took an extra few minutes to do some comparison shopping - you will eventually have to face the fact that now you have a substantial amount of money owed on your credit card and regardless of how your relatives fares you will still have to pay that money. If you don’t pay the money within the billing cycle then you’ll also have to deal with the interest charges that result from the hefty purchase.
Whatever the situation that’s causing you to stop thinking logically regarding your personal finances - whether it’s a sick relative, a car accident, a divorce or something else that makes you want to act impulsively - you need to stop and make a conscious decision to still look for the best deal and to not spend more money than you have to. A sick relative in another state does not justify a first-class ticket through an expensive airline. A totaled car does not mean you should run out and buy a brand new luxury car. An unexpected, sudden divorce does not mean you should go out and lease an expensive apartment in a pricey area of town. Remember that no matter the outcome of the situation, you will always have to eventually face the cost of the things you pay for as a result of the situation.
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