“Tis the Season of giving” and with the season comes additional spending. But, spending too much can be a year-round sport for some and we may not even realize it. We are constantly being targeted by ads everywhere we go. Retailers show us their shiny new items on television commercials, billboards, and now we carry them in our pockets.
Retailers have this down to a science. They know what our interests are, how many times we need to come across their ads before we give them our credit card, and how to trigger our emotions to make a buying decision.
If you did not think you were overspending, here are 21 signs you may be:
1. You have no working budget
2. You are not saving at least 10 percent of your income
3. You have no emergency fund
4. You do not have a college fund for your kids
5. You are not giving back/charity
6. You do not have investments accounts
7. You have no inheritance for your children’s children
8. You buy your kids what they want to keep them busy
9. You borrow from friends, family, loans, or credit cards
10. You borrow to make purchases
11. You buy to impress others
12. You buy on impulse because “You owe it to yourself”
13. You take vacations on credit cards or loans
14. You are living paycheck to paycheck
15. You are working longer hours to compensate
16. You cannot afford daily necessities
17. You only pay minimum balances on your credit cards
18. You have past due and delinquent bills stacking up
19. You spend over 30 percent of your gross pay on your mortgage
20. You fight over money problems with your significant other
21. You have an urgent need to sell your house fast
Do any of these symptoms resonate with you? Most people would rather not think about this or deny that it is happening to them. I often hear that, “I would rather make myself happy now because the future is not guaranteed.” What if I told you that you can set yourself, your family, and your legacy up for success in no time and when you do you can live and give like no one else?
The biggest set back when it comes to financial freedom is the psychology. We think that budgets and living within your means is a constraint, like a straitjacket. It frightens us. If we want to have massive results we have to make adjustments not only in our finances but on our outlook on spending.