How do you think about money? Warren Buffet says, “the rich invest in time; the poor invest in money.”
- Is money to be hoarded?
- Is it a tool to help you achieve goals, such as a vacation, supporting a charity or helping a child go to college?
- Or is money to be spent as quickly as it is earned?
There are people in each camp.
Hoarders are overly frugal. They live as hermits, so they don’t have to spend money socializing or buying Christmas gifts. They will wear shoes with holes in them and drive a car held together with baling wire.
Spendthrifts never save for a rainy day: if they see something they want, they will find the money however they can to get it RIGHT NOW. Then when the rainy day comes, as it always does, they find themselves in financial distress. This can become so severe, irresponsible spenders cannot make their rent or feed their children.
The most successful and happiest people are in the middle. They maintain a balanced attitude toward money: giving some, saving some, and spending some.
Spending habits are caught, not taught
We learn subconsciously from our parents; how they looked at money is often how we look at money. Our attitudes and behaviors toward money are subconscious and can be very difficult to change.
Every day, every hour, we are bombarded with messages from the media telling us we will not be fulfilled unless we have THIS or THAT.
It is unhealthy to yield to these messages. If you feel you regularly do, and do not have control of your spending as a result, awareness is the first step toward change.
Once you accept you have a money mindset problem, the next step is getting professional help. This can come from a life coach, a financial planner, or a free financial literacy class offered by your state, county, or a local nonprofit.
Getting from where you are to where you want to be
Part of changing is assessing where you are. Next is setting short- and long-term goals. A short-term goal might be to track your spending for a month. A long-term goal might be to be able to go on a cruise for a special anniversary.
With time and practice, you can become unconsciously competent at managing money responsibly. You can become a purpose-oriented spender, whose actions are driven by the vision you have of your--and your children’s--future.
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This content is developed from sources believed to be providing accurate information and provided by Kelly Financial Planning. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.