Born To Spend

Social Spending Addiction

One of the greatest disadvantages of living in a consumption-based country is that we lean towards living beyond our means. Social spending temptations is a real problem for all of us and can be incredibly difficult to overcome. We lack self-control when we are out with our friends, colleagues, or wants using our credit cards to borrow for our future funds we intend to receive and the interest we pay to on those credit cards, lines of credit will really dig a very big hole that will take a long time to get out of. These days we have a lot of companies competing for our wallet space in hopes that you use their cards to buy stuff we get very little value from but end up paying an arm and a leg for it.

It can be challenging at first to stop the habit of spending on frivolous things and people, but if you master this discipline of strategically reducing your expenses it can alter the course of your life. I had a friend who was drowning in about 60k worth of loans, credit cards, and student loan debt that was crushing him financially all with interest rates well above 20%. Although, none would be the wiser to know this about him because he was always going out, partying, enjoying life to its full potential. Finally, we got together to discuss his finances and most importantly his mindset of what he wanted to do in the next 5 years [he had maxed out his life].

For someone in his situation, opening a savings account wouldn’t be the best approach, so we tackled his biggest and most expensive obstacle which was his debt. We got 2 months of bank statements and all loans, credit cards statements and began computing what type social spender and find the areas opportunity to address. He was spending over $789.57 on restaurants, $42.23 on Starbucks a month! That’s no way to really enjoy life. The budget was created and my constant pestering insured he had the right tools and support to make sure he would get out of debt in about 2-3 years [No one said this was a quick fix!]

Lifestyle Debt

Some of us enjoy living beyond our means and accumulating debt to maintain a lifestyle that isn’t affordable or realistically represents who we are, but more of who we want everyone else to see us as. One the factors that influence unnecessary spending stems from social media and its role in our spending habits, we tend to show off our new cars, phones, adventures, travel destinations, clothes in order to feel good about ourselves and affirm that we are something more than we are. I’m sure everyone can relate to a daily barrage of Snapchat, Facebook posts, Instagram feeds, and Twitter assaults of your friends living luxurious lives. I’m sure you have stopped to ponder the possibility of how the finance this type of living considering you have relatively the same disposable income.

We can make small adjustments now, to change our lives in the future in dramatic ways that will not only benefit the way we derive value from purchasing something to what experiences we want to purchase!  What I am proposing is making these simple changes to your daily habits and this will snowball into a life where you have that emergency fund, you can handle a financial setback, or you can just have the discipline to reach your own goals you set.

Keep Life Simple!

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