Posted: 13th December 2017
Spending is all about choice
Buying stuff you want is fabulous.
Spending money you don’t have isn’t.
Every time we handover a card to pay for something, we are making that choice.
How do you know where you are, without tracking your spending?
If you have money in your account at the end of the month, it’s fabulous. If your overdraft or credit cards are expanding, it’s probably stopped being fun.
Life changes all the time and adapting our spending to match, is the key to happiness with money.
Whether it is a holiday with your bonus or reducing your spending, now you are working part-time. Both are your choices to be enjoyed.
Many of us are asking for time with our families AND unlimited spending?
Hoping our business, will be one that generates millions of pounds, working only 4 hours a week, obviously! Until you reach that goal, a more pragmatic approach is recommended.
Basic money education is now taught in many primary schools.
For those of us who missed it, here is a quick re-cap on ‘Needs and Wants’.
When we have money, we focus on our wants. I want that, I like it, it saves time, or just because. You get into the habit of handing over a card because it is so simple and easy.
‘Wants’ are eating out, entertainment, toys/gadgets, holidays and luxuries.
‘Needs’ are water, food, clothing and shelter.
When times are tough, we focus on our needs.
The minimum we need to survive. We need food to survive but steak and dessert would be wants, rather than needs – sadly. ‘Being sensible’ and shopping with a list, may not satisfy your instant gratification! However it will bring down your credit card bill.
The idea being, you cover all your needs first and then only spend what you have left on wants.
It is not all doom and gloom, often just cutting down spending for a couple of months will secure your fortune. No one wants to be told no but we all press the brake pedal on our car when the traffic lights are red!
Every time we handover a card to pay for something, we are making a choice.
To enjoy what we spend our money on and give ourselves peace of mind, or building up debt for the future?