There is a real threat to your finances that you might not even be aware of. No, it’s not that the market is down. It’s not even inflation. What could it be you ask? It’s staring right at you every day you look into the mirror.
Stop Spending Money To Impress Other People! Instead, invest it with M1 Finance.
Stop Spending Money To Impress Other People
Stop spending sounds easy enough right? Let me be clear here I am not talking about spending on things that bring you joy or happiness. I’m referring to the overspending that is killing your finances. Ever heard of a serial killer? You probably have, maybe even watched a few movies about some. There are also serial spenders, but the outcome of their actions is not obvious. This is why they are harder to stop than serial killers. Often they don’t even know they are serial spenders.
So how do you spot a serial spender? They spend with no real long-term impact on themselves besides losing that money forever. Also losing the opportunity to invest it. Their behavior is predictable and spending shows a pattern.
Stop Spending Money To Impress Other People
Money has the power to do many things. It has the power to give us freedom. Lack of money can force you to work until you die in a job you despise. Every time you spend Money To buy or do something you are also taking away Money To buy or do something else. This sounds simple enough but to truly grasp this concept takes much more work than you would expect. If you want to put this concept into action you must be willing to take a different path in life, one not too often walked by Americans.
You see if David spends $400 a month for five years on his shiny new sports car, that money and opportunity for that money is sunk into the sports car. If Pauline drives her old Honda civic and invests $400 a month for five years she will have roughly $28,000 at an 8% ROI. Maybe $28,000 does not sound like a lot of money to you. Think about this, $28,000 invested gives you about $1,120 a year forever. Think of it as that $28K is working hard for you and it allows you to spend that $1,120 a year forever. Now as you invest more growing the initial $28,000, the funds that it allows you to spend a year grows.
What you spend it on is up to you. But chances are that eventually, that income produced from the investment could buy you your freedom. No more having to work till you die at a job you detest.
Stop Spending Money To Impress Other People
Remember when I was talking about the serial spenders? Often these people don’t even realize they are spending money trying to impress other people. How can this be, you might be asking yourself? There is no way I spend money to impress others, you are likely thinking. I don’t give a SH** what other people think of me is another good sales pitch Americans tell them selfs.
As an American, the cards in this game are stacked against you. You likely lost the game before you even knew there was one. This game started before you were even born. Likely your parents had a hand in your losing strategy. Your environment, friends, parents, radio, tv, internet, teachers and so on all have pushed you past GO and never told you to collect your $200.
What I am saying is you were set up to not win this game from the very beginning. This all does not mean you can’t change that at any time you decided to. You see first you must know of this game then you must choose to win it. I often find Americans have the most trouble with the latter of that statement vs the beginning of it.
The fact is Personal Capital is a great tool to help you dominate this game!
The Reality & Truth
I know the truth oftentimes can be a hard pill to swallow. Even more so when the person to blame is ourselves. Humans, in general, have a hard time accepting that they control much more of their fate and future than we like to admit. Americans have more difficulty with this than the rest of the world. Get past the chip on your shoulder and hear me out on this.
The Reality
No one of importance in the world cares what you wear. They don’t care what car you drive. You don’t have to look like you are perfect and happy on social media. Hmmm, let me clarify that last part. Don’t spend money trying to pretend or fool yourself and others into believing something about you. Here is an example, you go on vacation to that beautiful tropical getaway for $5,000. Yet you just had to sell stocks to pay for child care because you are broke.
To me, the reality is your life should be about true substance. Be honest and real with yourself and others. Sorry Mike I can’t go out drinking Friday because I care more about my future so I am investing that $200 I typically blow going out. Go to a local park and share pics from that vs spending $5,000 on a trendy vacation. These reality checks will ultimately create or be the undying of your future.
Truth
Let’s just not sugarcoat it anymore. Can we all agree a spade is a spade, and two plus to equals four? When we are being honest it’s not being mean or beating ourselves up. It’s really about giving ourselves grace, kindness, and most importantly caring. We must care about ourselves, our future, and our family. Stopping spending money to impress other people is a statement. Others are also referring to ourselves.
I see it all the time people spend all their extra money trying to look at a certain status. Americans are brainwashed to think a luxury car makes me “important” and means I “made it in life”. All while they have no control over their freedom or time. We buy a house not because it makes financial sense, but instead because it’s what you “must” do to be a “successful adult”. Because renting is “throwing away money”, and only lower class rents because they can’t afford to buy.
The stories we tell ourselves become true, even when they are not.
Thank Me Later
Instead, start using this extra money and invest it. What if it’s only $10 a month? Invest that dam $10 vs buying the Starbucks because you feel pressure to fit into what others are doing at work. Stop wasting money on that overpriced “luxury” car. When you could use that $500 a month payment to buy your freedom and not have to ever work another day in your life at age 40. Imagine if you retired at 40 and could do anything and go anywhere you wanted every day for the rest of your life.
I think your life would look a lot different. When we don’t try to impress others, including ourselves we tend to find it easier to save and invest money. The best thing and most luxurious item you could ever buy or have is your FREEDOM. The freedom to stay home as parents and raise your kids together vs going to work. The freedom to travel the world slowly for 2 years vs only going on a vacation once or twice a year. The opportunity to own multiple houses you rent out while you rent a beautiful place on the because not having to fix or replace anything because you don’t own it.
Think about this, do your daily choices get you closer or farther away from FREEDOM