Self-control and saving money go hand in hand. However trying to save money without demonstrating self-control over your finances is next to impossible. Let’s face it, thousands upon thousands of people have no self control when it comes to spending money or saving it. It seems as if when we experience a windfall of extra cash in our hands the first thing we have to do is rush out and spend it.
Recently my daughter and her husband came into a $25,000 insurance settlement in one lump sum. Instead of thinking of the future and setting aside at least half of it for later in life they had the whole twenty five thousand spent in less than 30 days.
They bought a big screen TV, I’m talking about one that was 5 feet across and three and half feet deep. Then they purchased a 5.0 Mustang on time with a $5000.00 down payment and another new car with another $5000.00 payment. And then splurged the balance of what was left within 30 days of getting the check on some necessary things and not so necessary things. 90 days after that; guess what,
My son-in-law was laid off and 90 days later both cars were repossessed and the big TV was sold for less than half of what they paid for it. Most of the other things they bought ended up in a huge yard sale, so they could put food on the table. Self-control and saving money went out the window. It didn’t have to be that way all they had to do was to get a hold of a few basic ideas and implement them.
1. Remember that jobs are not always a given. Things can happen, that are beyond your control or your employers control and boom; it’s lay off time. With a little self-control and saving money, (about $3500) would have given them a 90 day nest egg to carry them through their shortfall. End result chances are they would have been able to keep the least expensive of the 2 cars.
2. Know the difference between “what you want” and “what you need”. They wanted the big screen TV they didn’t need it. Stop and think through what you’re planning on doing. Walk away from the slick TV sales person and the demo TV. Give yourself a cooling off period of at least 3 days. Chances are you will wake up to the fact you don’t have to spend that much money for a new TV.
3. Take the time to find someone you trust and can rely on to guide you in self-control and saving money. It always helps to have someone to turn too and be accountable to when you need advice about spending money. It becomes much easier when you know someone else is successful in practicing self-control and saving money.
As you can see this is not rocket science. My daughter and husband learned their lesson after the fact. You don’t have to walk a mile in their shoes. Put action behind steps 1 through 3 and start practicing self-control and saving money.