One of the biggest problems that people face when trying to build a nest egg for themselves is the temptation to buy luxuries that they don’t need. This habit holds them back from having the things that they’ve always dreamed about. They really don’t think about how much they’re giving up in exchange for the instant gratification of buying something new.
This is definitely one of my problems. When I hear that I can have my own infrared sauna for only $3000 (I know its crazy!), or when I’m walking through Future Shop looking at all of the shiny new laptops that are on display; it’s all to easy to forget about my goals. Those laptops are so tempting; some of them actually call my name.
Normally I know that these are things that I really don’t need. If I bought a laptop I would make money with it, but I already have a desktop computer that I am already making money with so it’s really not necessary. Also, who really needs an in-home sauna? (I do!) I would rather hold out for a time when I’ve reached my goals and I can afford to spend money the way I want to. For now, I know that I need to stay focused on the plan.
Unfortunately, when that adrenaline hits me, I forget my senses and suddenly I’m standing in front of something that will instantly make my life as happy as I’ve always dreamed it could be. I must have it!
I’m sure this kind of thing happens to most people. That is why it’s such a bad idea to carry a credit card around with you. To have easy access to money that is not yours and that you will have to pay interest on is a bad idea. Having your money in a debit account is also a bad idea; it shouldn’t be as easy as typing in a pin number to access your savings.
Luckily I keep all of the money that I don’t need for any given pay period in a separate savings account that takes 24 hours for me to access. Usually that’s enough time for me to snap out of it (Most of the time it only takes a few minutes after walking out of the store). I also only have one credit card that is set to the lowest possible limit and that I try to leave at home as much as possible.
Before I learned these valuable tricks, I wasn’t able to save even a cent of my paycheck. I spent everything that I had every month, and usually a little more. I eventually got myself into so much debt that it took me years to get out of. I thought I was just not one of those people who could save their money. When I finally figured it out, a whole new world of possibilities opened up for me. It’s a great feeling to know that I have money set aside for when I need it and that I actually CAN save for my future.
The moral of the story is that you shouldn’t trust yourself with money, especially if you’re already in a lot of debt. No matter how much you think you know yourself; that shoppers high can hit you at any moment and it will put your dreams in jeopardy if you’re not protected.