Your 7 steps to highly unsuccessful summer spending
Now is the time to get your summer spending under control.
I’ve been working with people and money for years. This is what I’ve learned – money makes us crazy! I’ve even written a couple of books on the subject. Summer is here … try not to blow up you budget! Keep these points top of mind as you load your car for your “Vacation of a Lifetime.”
1. “I can do it, just watch me.”
You are overconfident that we can control your summer spending. You think you can control your spending behavior—really?
- You take the teaser credit card application on the plan because you believe that you won’t use it.
- You go to a Timeshare presentation because you are in sales and know all the “sales” tricks.
- You pick an “all inclusive” package so you don’t have to worry about over-spending.
- You …
2. “I know I’m right and I can prove it.”
You rationalize and confirm your spending decisions.
- You don’t like to be wrong, and losing money hurts emotionally – a lot.
- You ask, “experts” and friends who agree with you to confirm your spending choices.
- You discount or ignore anyone who disagrees with you.
- You can and will rationalize your spending decisions.
- You …
3. “I’m smart.”
You think the skills and abilities that have made you successful in one area will carry over to your spending decisions.
- You may have a PhD in math, but doing currency conversions in your head at a crowded outdoor market might not turn out well.
- You may be in charge at work, but maybe it’s okay to let your tour guide decide where to eat – even if it costs a bit more.
- You must admit, some of your buying choices work because we were at the right place at the right time.
- You …
4. “This time is different.
You want to believe that a bad spending choice in the past won’t happen again.
- You will likely continue to spend the same way you always have.
- You aren’t very good at figuring out risk and probability.
- You are human, and will always spend emotionally and unconsciously.
- You …
5. “It’s an investment.”
You have no control over the price or rate of return of anything.
- You can not control market forces.
- You will use the term “investment” to rationalize some of your most outlandish spending.
- You must never confuse consumption spending and wealth creation.
- You should wait to declare the “primitive craft art” you bought an investment until you get back home and try to sell it.
- You …
6. “I have enough time to get my spending under control.”
You never have as much time as we think.
- You will spend money this summer that might be better served paying off bills and saving for long term needs.
- You will never get the money you spend back.
- You will make both good and bad spending decision. The question is how long do you have to recover from the bad ones?
- You …
7. “I know, but I hate to choose.”
If you are honest, you are probably not as good with money as you think.
- You simply don’t like to make the hard choices about your spending decisions.
- You are emotional with money.
- You seek to confirm your spending.
- You uses rules and information that is often incomplete or wrong when you choose.
- You “see” what you expect – not the truth.
- You will spend more than you planned …
Remember, your summer spending will impact your future lifestyle.
Spending money is hard work. Take the time and ask yourself …
- What is most important in life?
- What will it cost to get it?
- If I keep spending the way I have been, where will I be?”
Manage your behavior—then your money.
FREE course based on my books
Take my FREE course “Why Money Makes YOU Crazy” to learn more about your money temperament.