Spending!
Speaking of spending, let's first address habits that get us into trouble. Everyone loves chocolate cake, right?!!!! It tastes fantastic – why not eat it every day? How about every meal? What’s wrong with having more of a good thing? Wouldn’t overindulging in chocolate cake every day make you happy? Maybe at first, but after a while some things might start to bother you. Could it be that your belly would look like squishy piece of cake, you would have holes in your teeth, and or maybe develop an unbreakable sugar addiction? After a while, you’d hate what you’ve become.
Now how about your spending? Doesn’t it feel good to get those new fantastic designer boots? I’ll bet you can’t wait to wear them out with your new sweater dress, covered by your new camel haired coat. (It does sound like a nice outfit, doesn’t it?!) Never mind that this new fabulous outfit caused you to max out yet another credit card. Maybe you can wear it while you plan the next vacation you can’t afford or the new living room furniture you just had to have.
Do you continue to spend even though you’re on the verge of financial ruin?! Well, you’re not the only one. There was even a recent Wall Street Journal article:
“Six-Figure Incomes—and Facing Financial Ruin Some High Earners Live Paycheck to Paycheck. Here's How to Break the Cycle of Overspending.”
They tell the story of Sylvia Flores who earned more than $200,000/year yet she ran up some $300,000 in credit-card debt before deciding to put her financial house in order, after getting divorced and remarrying. It wasn't her first brush with borrowing woes—Ms. Flores declared bankruptcy in 2005 after amassing about $500,000 in debt. She felt entitled so she hired her own personal chef, housekeeper, and took multiple trips to Hawaii.
You might be reading this story, thinking how ridiculous this lady is, but how about yourself? Are you saving 15% of your income, how does your retirement savings look, how about your debt? The majority of people spend to not only satisfy a material need but more importantly, an emotional need. Psychologist say many people overspend to either fit in with peers or because of low self esteem issues. Whatever your reason, let’s break the cycle. Here are some tips on how to do it:
Read more in my book, "A Woman's Place is in The Market"! It's available for sale at Amazon: https://www.amazon.com/Womans-Place-Market-Caren-Laverty/dp/1945091754/ref=sr_1_1?ie=UTF8&qid=1528668089&sr=8-1&keywords=caren+laverty or at Barnes & Nobles: https://www.barnesandnoble.com/w/a-womans-place-is-in-the-market-caren-laverty/1128709743?ean=9781945091759