There is an familiar saying and it goes something like this: “Old Habits Die Hard”…meaning that it is very hard to change the way we have been doing things and the way we do things is usually what we will continue to do over and over again, year after year. What do your spending habits say about you? Listen to what actress Tori Spelling (who grew up in one of largest homes in the world and was around unimaginable wealth due to her father Aaron Spelling efforts) recently wrote about her struggles with money: “It’s no mystery why I have money problems,” Spelling wrote in her 2013 book, “Spelling It Like It Is” “I grew up rich beyond anyone’s dreams. Even when I try to embrace a simpler lifestyle, I can’t seem to let go of my expensive tastes.” Recently, it was reported that the IRS took 707K from her bank account.
What about you? Ask yourself this question: “Do I always have to have the best of everything”? When you go to a store, do you always have to get the most expensive item in the category you are looking in? What does that say about our self-esteem and the way we have to pacify ourselves with overpriced items to feel good about ourselves. This emotional way of spending could definitely impact our finances in a negative way. It is important for us to identify the reason we spend. For example, are you an emotional spender? Every time you feel upset…do you go shopping and start spending money to feel better. It may have even been money that was to be used for something else, maybe even for a bill that was to be paid. It has been said that most of a couples arguments occur over finances or the improper use of money or credit, which results in further stress for the family.
Notice this headline from CNBC showing how important it is to manage whatever finances we have properly. There’s no amount of money that can’t be outspent.
This may differ greatly from what those with substantial wealth act. I know of a person that went to very elite private school in New York City with some of the kids of some of the richest most influential people in the city (very famous actors/actresses kids went to this school and paid $30,000 per year per child to attend this school…many of them had 2-3 children at this school). Amazingly I was told personally that most of their “rich friends” from this school weren’t even name brand conscious when it came to what they wore. It wasn’t that important to them, they had nothing to prove…they were already well off and totally unconcerned about trends. Isn’t it amazing that some of the people with the least amount of disposable income spend their money on things that really have no lasting value to “appear” more well off than they really are? Maybe if that’s us, it’s time for a change. We don’t have anything to prove to others. If those we’re around don’t approve of us the way we are and our good spending habits, they weren’t really our friends anyway.
Our habits can help us if we have created good ones, but hurt us if we have fallen prey to bad habits. Which ones dominate your choice? It can easily be ascertained by answering this question “Where are you financially”? It is most likely the result of our habits we have in regards to handling and managing our available funds. Experts tell us that it takes 21 days to create a new habit. What good financial habit can you create in regards to handling your current resources in a better more beneficial way? What can you do that will have the greatest impact on your overall happiness and financial success in life.
Also See: Double your Income With One investment
I would like to encourage everyone to read at least one Recommended Financial Educational Reading books a month on how to improve your current financial situation (even if it’s good). This is important so that we can teach our children the correct way to handle our finances in the proper way. This vicious cycle of not paying ourselves first has to stop somewhere. Start a new trend today and mentor someone else to improve their financial life.
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