Metallic Pea

Frustrating People Since 1971.

Economics of Serendipity

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‘Dishonest money dwindles away, but he who gathers money little by little makes it grow.’  ~ Proverbs 13:11


The economic hard times which have been forecasted of late have caused me to reevaluate much of the way I live and think in economic terms—and not all of the results have been of the doom-and-gloom variety.  (Just where in the world is my stimulus package?)


Frequent visitors to this blog (and you both know who you are) will recognise that a common theme for me recently has been that of debt elimination.  Radical debt elimination.  The benefits of such a course should be self-evident, whether in hard economic times or during those rare instances when money is coming out of our ears.  Still, there is one aspect to it that I have been thinking about a great deal lately as the economy continues its slow descent back into the Carter years.  It is what I like to call the Economics of Serendipity and it quite intuitive, actually.  (NB: I use ‘serendipity’ in the Presbyterian sense of the word without any intent to deny or diminish God’s providence.)


With less debt—or, better yet, no debt at all—we have more funds available, usually described as ‘discretionary income.’  As the economy contracts, we will begin to see the effects in the dumping of things others can no longer afford to keep or in their attempts to make extra money from something they no longer have a use for.  It is these bargains that appear suddenly—serendipitously, if you will—that you can take advantage of IF you have the money to do so.  For example, we would like to one day purchase a larger car to accommodate our expanding family.  (We also have an issue with an expanding father, but I am cutting down on the bbq to assist in that area.)  If we were to be debt-free and have some money saved up, we could take advantage of any great deals that present themselves to us out of the blue.  (I can’t tell you how many times we have been driving to town and seen a car for sale that would suit us to a ‘T’ if we only had the scratch!)


My advice, yet again, is to eliminate your debt.  By doing so, you 1) won’t have your possessions repossessed, 2) won’t be throwing good money after bad, 3) won’t be a slave to your debtors, and 4) will be able to take advantage of any serendipitous deals that come your way!


Written by ninepoundhammer

May 8, 2008 at 8:56 pm

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