I’m introducing a concept called, Stupid Money!
Financial guru’s are always professing their undying love to those dollars that are going to work for them….and quite honestly, those hard-working dollars probably deserve the love.
But I want to remind us of the dollars that are just plain stupid!
Stupid money is money that we’ve spent, lost, have stuck somewhere, or we just don’t realize we could have.
My first example is that dreaded gym membership that we got as our New Year’s Resolution. We promised ourselves that we would use it, we even let the hot trainer convince us to sign up for a two-year contract…..
Yeah, we may still go every so often, but if you were to calculate your per session cost, you realize that you too could have retired by now!
My advice, do not sign contracts for things that are not yet a habit. Contracts force you to do something in the future, regardless of our current situation.
If you have one of these memberships that you never use, get out of the contract! Read the contract, and learn about the early exit options. Maybe there is a fee equal to a few months, it may hurt at first, but in the long-run it could be better for your cash flow.
I’d also try to ask everyone to have them cancel it early. Call the corporate office, if you try to get a hold of the president or CEO, you often times are connected to their office staff. These staff members are usually empowered to do a bit more than some customer service departments. Be polite, friendly, and sincere, because after-all it is your fault, not theirs.
If you can’t get out of the contract, then find some way to force yourself to use the membership.
Next time, pay a little more for no contract until you consider it a long-term habit.
(More Stupid Money later)
By the way, I still have 17 pre-paid personal training sessions from my life in Chicago….from over 6 years ago. Boy, I was stupid!