Of course there are a lot of reasons the economy may be the way that it is right now…
- Bad housing market
- Mass job layoffs
- Rising costs of everything
- Ryan Seacrest (not sure why but it’s a theory)
But I think there’s another simple factor that we may all be guilty of and it’s this…
Spending what we don’t have on things we don’t need
We’ve all done it. You see something you just have to have and even better, it’s on sale. But unfortunately you don’t get paid for another 4 days, so you bust out your trusty Visa card, swipe it, and commit to figure out later how to pay for it.
But unfortunately by the time you do actually pay for it (in the form of paying off your credit card) not only did you pay more for it than you can even imagine (because of credit card interest), but six months or a year has gone by since you purchased that item, and you don’t even use it anymore!
Stop right now and go through your closet and you’ll see what I’m talking about. Browse around your office, your garage, your dresser, or even under your bed, and you’re bound to find something that would fall into this category.
So how do you change this?
- Pay Cash – When you buy something with cash, you are spending money that you currently own, and not buying things based on money you may (or may not) have at some point.
- Think It Through – Stores are incredible at enticing you with impulse purchases. We justify it by saying things like, “It’s a great deal,” or “This special won’t last,” or the classic, “I need it.” If there’s any doubt whether or not you actually need it, you don’t.
- Don’t Shop If You’re Not Buying – If you have a tough time spending money you don’t have, I’ve got an idea…quit shopping. Don’t go to stores or online just to browse around if you’re not planning on making a purchase.
The bottom line is this: Quit spending money you don’t have to buy crap you don’t need.
Related posts:
