Money is a good servant but a bad master, someone said. It can drive you crazy every time you see it and all you can think about is spending it even when it is not really yours. This is a new year and things have to change. Everyone has been talking about financial freedom and getting to the next level and it all sounds really good.
Things get a little tougher when the rubber meets the road because there is nothing as beautiful as impulse buying and getting everything that you want as soon as you realize that you want it. That may seem fulfilling at first and your friends may even encourage you to go for it. Why in your right mind would you let such an opportunity pass you by? Well, for starters, instant gratification never really brought anyone lasting results.
What you are looking for here is lasting financial stability so there are some statements that you will need to avoid. What statements you ask?
You only live once (YOLO)
True, you do only live once and you expect that you will die at some point. Remember that your income has a life of its own too that does not look at your lifespan. In case you forgot, its lifecycle is once a month. That goes for your credit card bills, phone bill, water and electricity and every other bill you can think of.
If you really can’t avoid this statement, use it in the context where you remind yourself that if you don’t work for it now then you will not get another chance to do so.
It’s on sale!
Yes it is but your financial freedom is not. As long as the item was not on your budget (you do have a budget, right?) it does not belong in your possession (unless someone else paid for it). Anything on sale is more likely to be a want than a need and you need to clearly differentiate the two. You won’t die without that new pair of boots but you will if you don’t have any food to eat in the next few weeks.
You work really hard so you deserve it
You do work hard! Kudos to you! And that is said in the most genuine way possible without a layer of sarcasm. It however stands to reason that you should not waste all that effort on an item of clothing! Another thing, what ‘it’ are you referring to in this case? Spending on something irrelevant or unplanned for (and you probably already own) just means less money to spend on more important things and definitely more debt to offset. Is that what you deserve after all that hard work?
It’s an investment
A small English class; what is an investment? It is something that you spend your money on and brings in financial gain over time. It increases your finances with time so you get back whatever you spent on it and then some.
Will that hairdo, car or top bring you more money over time? Please explain how. That would probably earn you fifty marks in an exam!
That’s what credit cards are for
Credit card money is not your money. You are essentially borrowing from someone else (just that you don’t have to ask them whenever you need it and they already set a limit that you can’t go beyond). Before you borrow, can you repay it? Remember the interest that comes with it and the damage it could do if you don’t pay up in good time?
This is where you will need real financial discipline. Set reminders and avoid some friends if you have to but delayed gratification will definitely bring you great results. Something else to remember, “If it’s on your ass then it’s not an asset!”
