You earn money and then you want to spend what you have earned. Such
is the case with many people. Earn and spend, earn and spend. But if you want to
save some money for a rainy day or invest your money in the future, you have to
get off this spending merry-go-round.
It seems that we are all hard wired to want what we want RIGHT NOW!
We often purchase things so we can look a certain way and can keep up with the
current styles. Everyone wants their socio-economic status to be on par with
their peers. However once you begin to
spend or catch the wave of spending it is often difficult to stop. But it is
not impossible to do so. It is spending or abuse of spending that tends to be
at the root of most people’s financial problems as opposed to low incomes,
which is contrary to popular belief.
How then do you break the urge to spend money as fast as you earn
it? Let’s face it; we all want to have control over what we spend our money on.
The answer lies in looking at the ABCs of the financial equation.
What are the ABCs all about?
“A” stands for adding up the value of the purchases you wish to make
while “B” stands for breaking through the commercialism and all of the television,
magazine and online advertisements associated with products and services.
Finally “C” stands for comparing the alternative solutions you have to not spending
your money.
Let us take a closer look at the ABCs of this financial equation and
see how it all adds up:
A
Always take the time to add up exactly how much an item you wish to
purchase is valued at. How much did the product cost to make from start to finish?
Is the product of high quality or not? Is this a product that you will get a
lot of use out of and is therefore worth the cash you will spend on it today or
not? Never buy anything that will only
benefit you in the short-term. Think long-term value instead.
B
Break through what advertisers would have you believe. Advertisers will
tell you whatever they think you want to hear in order to get you to spend your
hard earned money to purchase a product. Refuse to be swayed by fancy words or
fancy advertising (and often misleading) ploys. Wearing a specific brand of
clothing or using a certain brand of shampoo or washing your clothes in a
specific laundry detergent will not make you more attractive, happier, more
successful or more popular. Don’t believe everything you are told.
C
Compare one alternative to another when you shop. Yes, you could spend your
money now but you have other alternatives such as you could save your cash for a
later date, a special occasion or for a bigger purchase down the road. Decide
what matters most to you and do that.
To control the urge to spend, spend, spend put the ABCs to work
every time you are thinking about buying something, whether it be a new coat, a
new desk, a new refrigerator or a new computer. This will help you keep more of
your money close at hand.
Image: Stuart Miles / FreeDigitalPhotos.net
It is easy to overshoot your budget when you spend using your credit cards instead of paying in cash. The temptation to spend more that what you actually need is higher with credit cards. You may not be conscious about your spending and the interests you accumulate since credit cards allow you to pay the minimum amount. View more on savings accounts.
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