It’s so easy to waste money
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!