The Weakonomist walks around with his head held high. Even everyday Philip does this in his day to day activities. Philip’s girlfriend thinks he’s cocky, and she’s right. While I do pride myself on knowing many things, I am humbled from time to time. When I’m wrong I admit it, fess up to it, and do my best not to repeat the mistake. Like a dog that just urinated on the floor, I walked back to my desk with my tail between my legs last week when mailing off my car payment.
I boasted to my mother that I was so smart. Usually, I receive my car payment in the mail between the 14th and 18th of each month and its due on the 25th or 26th. My parents would pay the bill as soon as it comes in, but not me. I write the check and seal the envelope but don’t mail it off until the last possible day. By mailing the check later I get a few extra days of interest on my ING Direct savings account. It pays 3% currently and thats a few extra bucks in my pocket each month. Essentially, I’m milking every dollar for its maximum value.
Or so I thought. As I sat at my desk, putting the stamp on the envelope I noticed the fine print on my Chase Auto Finance car loan. Of course I knew what the interest rate was and had acknowledged that its more than twice the rate I’m getting on my savings account. However I did not know that interest on the loan accrues daily, just like it does for ING Direct savings. So every day I hold on to the principle of the loan instead of paying it, I’m suffering.
I should have been smart enough to make that connection. You reader, would not likely make the same mistake. Going forward, this loan gets paid as soon as I get the bill. Logic demands it.
I’m glad I never wrote a post about how smart this was. There are other bloggers out there that might think they are just as smart for different reasons. I hope they read the fine print and make sure what they’re doing is really a good idea.
 By The Weakonomist |
The Weakonomist is the founder of Weakonomics. Clicking the picture of the puppy will tell you more about him. If you like what you're reading consider subscribing to the blog, following him on Twitter, and checking out the related posts below. Please consider a donation if you really enjoy Weakonomics. Also keep in mind that nothing I say can be construed as financial advice. |
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