Don’t Spend Money Because You Have It

There’s something in our nature that just gives us a rush when we spend money. We see something in that store window and we feel like we just have to have it. Maybe it’s a pair of shoes or a brand new TV. Whatever it is, our palms just get all sweaty and our eyes almost bulge out of our head. In a moment we’ll be reaching for our credit card to make that spontaneous purchase. We’ll feel good about it for about 2 hours and then we’ll get sick to our stomach because we realize that we’ve just made a huge mistake. Instead of admitting we were wrong, we just hold onto the purchase and try to enjoy it, but much of the time it was absolutely not worth it.

spending money because you have it

Our Desire to Spend Money

There are others of us though, that don’t like to reach for our credit card. We are 100% cash people, and we feel high and mighty because of it. We don’t always admit it, but when we hear about someone making a $500 car payment each month, we subtly shake our heads and think about how wrong their thinking is. “They should just buy a less expensive car and pay with cash,” we think to ourselves.

You know what though? You aren’t perfect either. I bet that you have a number where you automatically head out and spend money. What do I mean by this? I mean that each one of us that likes to stockpile money into our savings account typically has a certain value where we feel like we have a lot of money, and then we suddenly feel like we “need” to buy something. We might look out at our car and realize that it’s not looking too great these days so maybe it’s time for a newer used one.

For some of us, this amount is $1,000. For others, it could be $10,000. Whatever your number is though, you really need to change your mentality otherwise you’re almost as bad as the spontaneous spender that pulls out their credit card. You might think that last statement is ludicrous, but think about it. You’re making the same dumb purchase, you’re just doing it with $10,000 more in the bank. So, throughout your entire life you’re only $10,000 ahead of those that people that you think are absolute idiots.

What to Do Instead of Blowing Cash

Instead of running out and buying a fairly expensive car just because you have the money to do so, it would be wiser for you to delay gratification and instead of using that money to go out and buy a depreciating asset, you would invest it. If you approach your purchases in this way, you’ll still have decently nice things today as you need them, but in the future you can live in a way like you’ve never experienced before! You won’t just be $10,000 ahead of your spend-happy friend, you’ll be millions ahead. Trust me. When you start making money with money, it can grow at an alarming rate.

Do you spend money because you have it? How do you avoid spending when money is burning a hole in your pocket?

12 thoughts on “Don’t Spend Money Because You Have It

  1. I definitely remember that I used to be in the latter category. I would save up a decent amount and then feel like I should be able to treat myself for saving up X amount of money. Then before I knew it, the savings was low and I was starting from square one again. No more though. I’m making sure to pay myself with my investments so the money isn’t there to tempt me should I suffer a relapse.

  2. I’ve never really been a spender but I have always been a saver. If I ever wanted something I would save it all up then buy what I wanted in cash. It made more sense to me rather than having that momentary high.

  3. You hear and see this all the time. If its there people will find something the claim the need or just want to spend it on. I remember stating I was saving and people kept asking what am I saving it for. When I say nothing just to have and invest later or for retirement there are like yeah but you not buying something like a tv or car? No. If we can just get over having money in our accounts and pockets without the need to blow it.

  4. I hate it when people just go out and spend money for the hell of it. No wonder there are so many people with debt problems around the world. My wife and I limit our discretionary spending to a maximum of 5% of our weekly wage.

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