The hardest things in life are the problems we face all on our own.
Key Points:
- When we delay purchases, we give ourselves the time to re-think whether we need the item or not.
- Whenever your debt struggle feels like it’s too much, you might want to read a personal finance blog or books such as The Art and Science of Spending Less.
- Being “tight with money” or “risk adverse with cash” is more closely aligned with being prudent, frugal, and smart. Language matters.
- The one thing about getting on top of your money issues is that it’s a virtuous loop. You’ll sleep better at night and as a result, you’ll perform better at work.
We’re all social creatures with emotions. We need emotions to signal our social needs with other people. But don’t let emotions drive your judgements involving money. Leave feelings out of your spending decisions. Be realistic and rational. Feelings and emotions alter our behavior with money, often for the worst. Take your time and work on becoming self-aware of your emotional state. There’s nothing wrong with having emotions with money.
Here are some ways to get through a no-spend day- without giving in to your emotions:
- Try to start your day by acknowledging that you have everything you need to live. If there is something that you think you need, push the idea way off into the future. When we delay purchases, we give ourselves the time to re-think whether we need to item or not. Often times, we can come up with other substitutes, or even think we really didn’t need the purchase in the first place.
- Don’t ask others how much they spent on their clothing. Compliment them but find other things to talk about. Don’t let money become an obsession for you. Reduce the ‘money’ noise in your life. De-prioritize thinking about it or comparing yourself to others.
- Throw out your ‘Someday’ stuff, of tools, implements, and equipment you’ve convinced yourself you might be able to use in the future. ‘Someday’ stuff is code for junk. It’s often a combination of certifiable junk and ‘maybe-someday-I’ll-use-it junk. Get rid of it, it’s junk. Give it away, share it or barter it all for something definitely you really need.
- Debt fatigue is a source of anxiety and worry. Money trouble can feel like a huge burden. Whenever your debt struggle feels like it’s too much, you might want to read a personal finance blog or books such as The Art and Science of Spending Less. There are a lot of people out there fighting the same fight who may offer ideas and techniques for dealing with it.
- The language we use about money reveals us. Being “tight with money” or “risk adverse with cash” is more closely aligned with being prudent, frugal, and smart. Language matters.
- It’s your responsibility to take care of your own financial profile first. If you do loan someone money, get a witnessed promissory note or secure your loan with something of theirs. Ask them to temporarily give you their bike or transfer their car into your name. Do not jeopardize your financial status with personal loans to other people.
- The one thing about getting on top of your money issues is that it’s a virtuous loop. You’ll sleep better at night and as a result, you’ll perform better at work. When you do your job better, you may receive bonuses, a raise in salary or a better role.
- If you feel you’ve hit rock bottom with your debts and overspending behaviors, seek help from not-for-profit groups that help you reverse your behavior. Examples are Compulsive Spenders Anonymous and Debtors Anonymous.
References:
- Fitch, C., Hamilton, S., Bassett, P., & Davey, R. (2011). The relationship between personal debt and mental health: a systematic review. Mental Health Review Journal, 16(4), 153-166.
About the Author:
S. M. Mitchell is a former radio host in Brisbane Australia. He was sometimes known as a financial comedian who used black humor to poke fun at people’s outrageous spending habits.
His straight forward approach in this book is decidedly less humorous and much more practical.