You’ve probably heard the phrase, “That money’s burning a hole in his/her pocket” a few times during your life. If not that one, then maybe you’ve heard, “Spending money like it’s water” or, “Easy come, easy go.” There’s a reason these sayings are so common—we all spend way too much money, way too easily.
Are You Judicious about Your Spending?
When was the last time you stopped to critically analyze every purchase—and yes, I do mean every purchase—before you made it? If you’re like many people, you probably allow yourself to buy things that you want as soon as you want them, provided they aren’t too expensive. Even if that just means picking up a $3 magazine at the grocery store, it’s extremely wasteful.
In order to be choosier about the money you give away, you must do two things before you buy:
First, consider whether you really need the item in question.
Next, ask yourself if there’s any better way to use the money. Most of the time, you’ll find that there are much better choices to be made for your cash, such as paying down debt or building savings.
Once you realize that the short-term, immediate purchase you’re considering isn’t a good choice, you will spend less. Then, your money will still be there later when you find something you actually need.
Here’s the thing: money doesn’t come easy. You probably realize that every time you hear the alarm clock beeping on Monday morning. Cash doesn’t burn a hole in your pocket and it’s really nothing like water. Money is an extremely valuable commodity that you trade hours of your life for. Hold on to it—preserve it—and look at spending it like a sacrifice of something that’s meaningful. When you do this, you’re bound to make better spending decisions and keep a whole heck of a lot more of your cash.