Know Before You Go to the Store
You may know someone who seems to be frugal and thoughtful before spending their money. And you may also know someone who likes to spend with little thought about what they have available to spend unless it is the limit on their credit cards.
Which do you want to identify with? Neither, you may say, since the first has little fun and the second has too much fun with a painful future. Maybe somewhere in between.
However you decide to play this money game we live with, I do hope you can learn some discipline and patience for providing for your future needs and wants.
One simple rule is “Make a list”. A list of what you need to get will help you limit what you might be tempted to spend while you are shopping. You will spend money. The question is how much do you plan to spend?
If you can answer that question before you go shopping, then you are in control. The proof of that control comes when you add the receipts when you get back home.
What About the Next Trip?
Your next move will be when you leave on your next shopping trip. To prepare your list you must face your limits and assess what your reserves will allow you to spend.
Some items on your list will have alternative options. Some items will be priced differently at different stores. The time and distance between these options need to be weighed against the price of fuel, your vehicle miles-per-gallon, and your schedule. This is an example of the Second Rule of Spending: “Make a Cost to Benefit Review.”
Reserves and Options
Income, savings, and investments are your reserves. If you have little, then you need to re-think your financial philosophy.
It will take patience and discipline to build your reserves. If your main job income does not allow you to save (per your current spending habits), then get a second job or side hustle to specifically put money into your reserves.
A beginner’s level of comfort for your reserves will be three to six months of living expenses in savings and investments. Remember: Investments earn income such as interest and dividends.
With reserves come options. That includes employment options, self-employment options, and investment options. In addition, spending options will appear. If you have reserves, you can pay cash and take advantage of sales and volume buys on things you need, which will save money over time which is as good as earning money.
Need It Now or Can It Wait?
We all have needs. However, some things look like a need to us when they are just a want. We can delay our wants, but needs seem to come up when we eat and dress.
This is where you can improve your play in the money game, a lot! Know what you can spend today and what can be delayed. That will bring you greater control and confidence. In turn, that will help you build your reserves to help with your options.
Play to Win Fairly
Discipline can help your judgement for what is fair and honest. Winning at all costs will hurt you in the end with lost relationships and lack of opportunities.
However, play with care and a willingness to learn how to play well and you can grow your chances to put you into a good place financially. You will be in a better position to win!
Save for the Future
Saving is a hard habit to develop. However, you can develop the habit and you must develop the habit to secure your future.
Making saving a priority over spending gives you a better perspective for financial decisions.
Setting aside time to consider how you can save by making smarter spending decisions will require discipline and patience with yourself. It will not be easy but it will be worth it.
Spend for the Future
As you make spending decisions be sure to consider how they will affect your future.
Spend with staying healthy in mind. You will enjoy your future better with good health.
Setting aside money to contribute to a retirement investment account means some sacrifices will be made. Some wants will be delayed. And some meals may have to be skipped.
Protect your assets. Many people expose themselves to sizeable losses and debt by not buying health insurance, auto insurance, or life insurance.
Difficult Times
The economy, with rising prices, seems very difficult to navigate. That will require some difficult decisions. This is serious.
The truth is you must decide what will work to get you through this time.
Some will consider just reducing their spending, starving themselves, and joining the homeless. They are hopeless.
I do NOT want you to join their ranks! You can do better. If you are short on funds that is an income problem, not a life crisis. Find some more income and resolve your temporary problem to make time for better planning for your future.
Put Discipline to Work
Getting up in the morning is the first step toward your future, for that day.
You only have today to use to make a better future. You want to arrive in your future days saying, “I am glad I got up and went to work to be able to have money to save for this day!”
You cannot let yourself get lazy or have too much fun. Those things will hold back progress and limit what you can do for your future.
Work while you can. Work on being strong to work longer. Work overtime or get a second job, when you need to recover from a job loss or emergencies. Do what needs to be done to get the income you need.
But qualify your needs to be sure you do not put yourself in a position to pay for things you do not need.
Measure your wants. Can you afford them, now? Building reserves will help you deserve your wants.
Discipline will be the best key to keep you focused on your goals for the future.
Spend Time
Before spending money, spend some time learning how to spend in a smarter, wiser way. I say wiser since that infers that you are considering how that will affect your future. A wiser decision will mean a better future, financially.
Spend time in your mind. Set goals and consider what you want to do in the future, what you want to be, where you want to live, and how you want to live.
With goals in place, decisions get easier. Discipline will make sense. You will be able to measure your success and stay focused on daily progress.
Then, when your future gets here, you will be glad that you first did your spending with your mind!