Now there is a topic you probably didn't expect from a financial coach.
So many people think that if they live on a financial plan, they can't spend money on anything fun anymore.
Nothing could be further from the truth! It is not about stashing your money away in cookie jars and never enjoying the fruits of your labor.
We work hard for our money we certainly should enjoy some of it.
We just have to learn how to handle it wisely.
Understand it is just stuff How many times have we just had to have the one particular item only to finally purchase it and it wasn't quite what we thought it would be? One of the key principles to spending wisely is to remember that this stuff is just that, stuff.
Nice cars still get old and break down.
Electronics become outdated, and even dream homes need upkeep and repairs over time.
Nothing we buy will ever bring us true happiness.
Owning nice stuff isn't wrong in my opinion, we just have to remember where that "stuff" falls in priority to the other parts of our life.
Don't forget the big picture Another key in spending money better is to understand what the "opportunity cost" might be.
If you are more concerned with driving the right car or wearing the right brand of clothes, than you are with your retirement you might just end up working longer than you ever planned on.
When we purchase items, that money is no longer available to be used for other opportunities.
I am not suggesting that you never buy anything nice and just stash all your money away in investments.
Instead, I am encouraging you to remember to consider the big picture of what you want to accomplish and see if your spending habits are matching up to those priorities.
Have a plan Last, but certainly not least, have a plan for your money.
Most people don't just get in their car and drive off without an idea of where they are going.
We usually have a general idea of where we are going and the most direct way to get there.
Sure we may stop off and see the world's largest ball of twine, or take a more scenic route, but at the end of the day, our goal is to get wherever it is we are going.
The same is true for spending your money.
Have a plan.
Tell your money what it is going to be doing and then stick to that plan.
If you just have to have one of those buttons of Mt.
Rushmore that blinks continuously, then consult the plan and make the necessary adjustments.
The goal of dealing with our money is to enjoy the process.
Have fun, but avoid the excesses that can really ending up costing so much more.
So many people think that if they live on a financial plan, they can't spend money on anything fun anymore.
Nothing could be further from the truth! It is not about stashing your money away in cookie jars and never enjoying the fruits of your labor.
We work hard for our money we certainly should enjoy some of it.
We just have to learn how to handle it wisely.
Understand it is just stuff How many times have we just had to have the one particular item only to finally purchase it and it wasn't quite what we thought it would be? One of the key principles to spending wisely is to remember that this stuff is just that, stuff.
Nice cars still get old and break down.
Electronics become outdated, and even dream homes need upkeep and repairs over time.
Nothing we buy will ever bring us true happiness.
Owning nice stuff isn't wrong in my opinion, we just have to remember where that "stuff" falls in priority to the other parts of our life.
Don't forget the big picture Another key in spending money better is to understand what the "opportunity cost" might be.
If you are more concerned with driving the right car or wearing the right brand of clothes, than you are with your retirement you might just end up working longer than you ever planned on.
When we purchase items, that money is no longer available to be used for other opportunities.
I am not suggesting that you never buy anything nice and just stash all your money away in investments.
Instead, I am encouraging you to remember to consider the big picture of what you want to accomplish and see if your spending habits are matching up to those priorities.
Have a plan Last, but certainly not least, have a plan for your money.
Most people don't just get in their car and drive off without an idea of where they are going.
We usually have a general idea of where we are going and the most direct way to get there.
Sure we may stop off and see the world's largest ball of twine, or take a more scenic route, but at the end of the day, our goal is to get wherever it is we are going.
The same is true for spending your money.
Have a plan.
Tell your money what it is going to be doing and then stick to that plan.
If you just have to have one of those buttons of Mt.
Rushmore that blinks continuously, then consult the plan and make the necessary adjustments.
The goal of dealing with our money is to enjoy the process.
Have fun, but avoid the excesses that can really ending up costing so much more.
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