So I realized that over the last 2 years I have slowly freed myself from the grip of contracts. Even before starting my debt smashing mission this year, I made it my aim to see out current contracts I was in and not resign, or ‘upgrade’.
Contracts essentially are debt. You are committed to a monthly, weekly or fortnightly payment. People will harass you if you don’t make the payments. It’s the ‘I want it now. Like ,RIGHT now dammit!’ *stamps foot* mentality that gets you sucked in.
I was in a phone contract, laptop contract and white good / furniture contract. All of those are now done and dusted. I have the shitty old laptop I’ve had for years (and spent 2 years in a contract for) and a *gasp*an Iphone 3.
How RETRO is that!
I was in a contract for the phone for 2 years too. It was all shiny and new and ooohhh check out my iPhone 3 peoples!!! at the start.
And then very quickly the word iPhone was followed by escalating numbers (what are we at, like iPhone 5000 now??) and my phone did indeed become relegated to the crusty ‘has been’ part of phone stocking stores and they stopped making covers for them. I actually found the cover thing the most frustrating.
I remember going into a store and asking for the iPhone 3 covers. The guy looked at me with what I suspect was a mix of sympathy (perhaps she can’t afford a better phone) and amusement (um, doesn’t she know iphone 3’s are sooooooooo 2010) and shook his head.
Fortunately, I am not in the slightest bit gadgety or cool. So I have no use for newer / better / shiner versions every time they come out. Which is good, because, in case you haven’t noticed, newer / shiner and better things come out every freaking week.
So, my laptop my be slow and cumbersome – but hey, its working. I’m writing this post aren’t I? And my phone might be totes uncool, but oh well. I’m not paying some provider $90+ a month.
These days I pay my internet – $25 a month (can cancel with 30 days notice) and no contract pre-paid phone recharge vouchers – $30 a month gets me by just fine!
When these things do eventually come to the end of their lives I will purchase replacements IN CASH.
Aside from my credit card and personal loan, my biggest ‘must pay’ commitment is my furniture storage cost per month, which is $183.00. I have arranged for this to come out of store and be delivered to my folks place in the next month. The delivery is a huge $1870 because I now live interstate. But Im using money I received from my tax return to pay this cost, and get this monkey off my back.
Slowly, slowly I am getting out of financial commitments. Patience is a virtue in this game! And it’s also the way to stay out of those contracts in the first place – be old school and save for what you need.