If I asked you how much, down to the exact penny, you spent last month, would you know? If you’re like most people in the United States, the answer would be no. Why? Because people in general are not programmed to handle multiple streams of bills and responsibilities. Go back 30 years and an average family deal with less complex responsibilities. Today, the average person has to deal with the following: car payment, utilities, rent/house payment, water, car insurance, home insurance, credit cards, groceries, Netflix, phone bill, internet, dog chow, emergencies, and a night out with friends. Stats don’t lie: The average household carries a credit card balance of $9,600. United States has a revolving debt of 953.3 billion dollars as of May 2016.
The problem is not the fact that people don’t have enough money, but it’s the mindset about money. Companies make it their mission to pump out advertising 24 hours a day to make us, the consumer think a certain way. Advertisers spend millions of dollars making commercials to make us insecure about ourselves. All we have to do is flip a channel and see all the beauty commercials with photo shopped bodies.
Then turn on the news and see all the sad stories of teens going to extreme lengths to match them. Unattainable photo shopped magic can’t be matched. Companies also find ways to make spending easier. Apple pay, Android Pay and Samsung Pay sound familiar? Just a quick swipe and voila! That 50 inch LED TV is yours. Taking your wallet out is not even necessary anymore. Shopping online? Just add to cart and buy now. Your credit card info is already saved for your “convenience.”
The odds are against us. That’s why the proper mindset is needed. Calculate dollars earned to life energy. So a new Xbox One that cost $300 at $10 per hour equals 30 hours of life energy. A little nugget I learned from a wonderful book called “Your Money or Your Life.” Now I’m not going to say that you still won’t buy the new iPhone, but at least now the value/energy comparison is there. The mind is programmed to consume or buy something when it is so easy to attain.
I’ve had people ask me what is the best way to lose weight. My answer is always the same. Don’t buy any food. When my sister was living with me a few years ago, I was training her to be in good enough shape to be in the Air Force. She was overweight and needed to lose 30 pounds. So what did I do? I didn’t buy food. Snacks were not in the cupboard and only healthy food was available. It’s easy to lose weight when you don’t have food to snack on. Late night hunger looses its punch when you have to put on shoes, get into your car, and drive to the store.
Since technology is being used against us. We have to use technology to use technology to benefit our needs. Apps like Mint do a wonderful job tracking your money so you can easily see how much is being spent on a daily basis. You can also set up a budget through Mint to make sure that you have a set budget for the month. I use Mint as my personal tracking tool and check it everyday to make sure everything is good.
I also use Mint to make sure I don’t have any discrepancy in my spending from fraud. I have seen a few pop up before and all I do is call the company and get the charges off my account. If you are not very tech savvy, I would use a notebook and keep a note of all the spending you make every day. Excel also works and you can format it and have a column for every type of spending.
Remember the whole food analogy I had earlier? Same thing goes for money! Can’t spend it if it’s not available. I invest 50% of my monthly income into various investments. Since I don’t have the money readily available in my account, it’s another wall to block me from buying stuff I don’t need. Money is hard to earn and takes a part of your life that you can never get back. Time. Spend it wisely.