(Note: Welcome back, interneters! I hope all of you had a safe and fun Thanskgiving. I postponed my Friday blog given the holidays, but we're back today with some more positive advice. Enjoy!)
Author Jason Jack, I really want to buy something--should I spend or should I save my money?
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We ought to live like we'll live until we're 100.
We ought to live like we'll die tomorrow.
We ought . . . to do both?
These premises might sound as though they contradict one another (and they may at times) but to better out lives we must find a balance between living for today and living for tomorrow.
Balancing Act: Responsibilities VS Leisure
To find this mysterious balance that'll help us choose between a $1,000 "toy" and a diverse stock portfolio investment worth the same amount, we need to look at prioritization.
- What needs to be financially taken care of now that'll affect/impact your way of life?
- Is it objectionably more important than your intended "toy" purchase?
In lamens terms, for example, do we have to pay rent this month? How much is our rent? Let's say $950. Including rent, let's say our total monthly bills are in the range of $1500. BUT, we really want that new purse worth $1500 or both the new XBox and PlayStation worth the same total. What to do?
You must ask yourself are the toys more important? It might sound silly, someone selecting a purse or plaything over rent, but it happens. I've seen people, know people, and given financial advice to people, about their lack of financial prioritization. They select leisure purchase over paying their rent, registration, and even buying groceries for their child!
But it's not always something big that replaces a rent payment or utility bill payment. Purchases add up: a new DVD here and there, an Amazon purchase, a Starbucks trip, eating out now and then.
It takes no time to spend a lot of money, and a lot of time accruing it.
The people I've met wish they had a better life in which they could spend money without thinking of the consequences. The secret? They can have that life now--all it takes is a little bit of consistency and determination until spending within our means becomes second nature.
As the Wise Person Said, Spend Within Your Means!
To ensure a life without regret or anxiety of back payments and late bills, we must live within our means. And spend within our means. Pay the rent, pay those bills, put what you can (if any) into savings, buy some food, and then allot some play money. Living within our means does not mean we won't treat ourselves, buy gifts for friends, or be able to go to that fancy restaurant we've been wanting to go to. It just means we pick and choose what we can given the amount of play money we have left in any given time period.
Have $100 at the end of the month to play with after savings, bills, and groceries/necessities? Go wild! Want to buy something worth $200? Save your play money for two months. It's that easy.
And the fun thing about a majority of purchases--excluding limited releases--we don't have to have them now. And even concerning limited releases or movies, we don't need them either.
Take it all away, all of the toys and distractions, and we'll be fine. They're nice, but we can live without a world of material possessions. Let this be your mantra when you're itching to make that purchase in lieu of paying that phone bill. Just think of the debt and wasted money you'll accrue on late fees or backpayments due.
It's wasted money. Just remember, waste not, want not.
SO . . .
Use your money wisely. Use it however you want, but please understand there is a fine balance between living financially for the present and the future. If we use a little prioritization and foresight, we can have the things we want now while building a bad-debt free, nest egg'd, comfortable environment for the future. We'll also save us cash, but more importantly, it'll save us from a lot of headaches and a handfull of anxiety.
Until next time, be wise and enjoy your week!
--Author Jason Jack
(I'm an author of adult and children's books, a positive advocate, and lover of sweets (to my detriment at times). What you just read is a snip-it of my ever evolving, very malleable philosophy of life based on experience, conversations, and years of studying. If you get anything out of reading my words, I hope it is to think and be positive :)
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