It is so much easier to waste money when you have more of it. You don’t think about where all the money trickles out because you aren’t worried about every penny or dollar; you’re just buying and maybe in some cases, paying more for convenience (e.g. not waiting for the price to drop).
It’s the reason why we look at celebrities and think:
Oh my goodness how wasteful!
$60,000 on sneakers and he doesn’t even wear them!
… but he doesn’t have to think about wearing them.
$60,000 to those with millions with a consumerist mindset is like $60 for us. Obviously, I’m not talking about frugalers like Warren Buffett who refuses to upgrade to a bigger house or IKEA founder _________ who still drives a used car.
Even $60 is a lot of money for some people living on the edge of poverty, but for others, it isn’t actually crippling to our budgets; we can handle a $60 purchase on occasion without it breaking the bank and even waste it without thinking.
So how does one combat it?
Enforcing a false sense of scarcity helps but when you don’t really feel that scarcity, does it really work?
I can tell you it doesn’t for me unless I have a true, legitimate external pressure bearing its weight down on me to force me to change.
I’m sort of laissez-faire about many things and not as much of a rule-follower, but if I set my mind to it, I can do it (e.g. getting out of $60,000 of debt in 18 months).
It’s just that I need something to really force me to feel that scarcity (e.g. not finding a contract when I thought I would).
It’s easier to not appreciate what you have until it starts drizzling away, but the trick is to catch it and correct the situation before you reach a tipping point.
There’s always time to right the ship. There’s always a second chance and right now, is the best time to take charge of your money.
Save your money, but more importantly, learn how to invest it.
Always keep a firm grip on your situation and be realistic. That’s it!