There's a very simple formula for creating wealth: Spend less than you earn and invest the surplus.
Corollaries to this are :
Save 10% of what you earn.
Only pay cash for purchases, don't use credit cards.
If you do use credit cards, pay them off every month.
Keep track of everything you spend and earn;
Somewhere along the line, you've probably come across all of the 'rules' for creating wealth. But like many people, you may find that your financial habits don't lend themselves to building a strong financial base.
The logical question to as is why do people keep spending and spending on so much stuff--stuff that often costs them for storage space, larger homes, or interest on credit card purchases?
What is it about the allure of material possessions that drives people to put themselves in financial danger while ignoring their inner desire for freedom and security?
A lot of it has to do with habits. Fueled by endless media messages to buy whatever might suit our fancy, we have developed spending habits that go so far beyond survival levels that we often lose track of what we really want out of life.
Somewhere along the line, people have come to believe that opulent living is everyone's birthright, even if it means using up planetary resources and creating financial pain. Spending, for many people, has gotten out of control, as people search for fulfillment through their piles of stuff.
Take a Breather
I'm not going to suggest that you suddenly stop buying more stuff or that you give up accumulating whatever it is that you equate with living the good life. What I am going to suggest is that you take a breather and find out what you really need to experience feelings of freedom and security, which most people want.
Start with one day where you go on a spending fast and don't spend anything. Not one penny.
The next step is to choose a week during which you only buy essentials--food, basic transportation, medical. Pay your bills, if due, but do not buy anything new.
During both of these non-spending times, pay attention to the feelings that come up. You may notice some anxiety, impatience, or physical cravings. Notice the feelings in your body that not-spending stimulates. If you have Build Your Money Muscles, it's a good time to review Exercise 7, which deals with releasing and replacing uncomfortable feelings.
Before you go on the one-week spending breather, set a limit as to how much you can spend per day once you have returned to your usual routine . Do your best to stay within this limit, once again noticing the feelings that come up as a result of staying within the boundaries you have set.
I spoke to a woman recently who went in and out of debt because of her penchant for designer clothing. If she didn't wear designer clothing, she felt inadequate. Each time she committed to stopping her excessive spending, she lasted about a month. After that, she compulsively shopped and bought new clothes.
What's your limit? How long can you go before the urge to spend takes over?
When you do feel the urge to buy something specific--something you know you absolutely must have right away--- I suggest that you wait three days before buying whatever it is that you can't live without at that moment. You may find, as I did when I started this practice, that three days later, the urge has passed completely.
To subscribe to Joan's newsletter, visit http://ProsperityPlace.com/nl/ Or send a blank email to [email protected]
Copyright 2005 by Joan Sotkin
Prosperity Place(r) • 2581 Camino San Patricio • Santa Fe, NM 87505
Helping you improve your relationship with money with the Build Your Money Muscles Program(tm). Visit http://ProsperityPlace.com
Recent Comments