With the shaky economy this past holiday season there was some trepidation about what to expect in consumer spending. Would Americans still spend money during these tough economic times? The answer was a resounding yes.
That’s because spending isn’t the problem. We will keep spending even when we don’t have it. I know because I have been there. I have been just as guilty as the next American of doing it.
So while spending isn’t the problem, what is the problem is learning how to separate needs from wants. I think we have a tough time with this.
While some things may be obvious, such as food is a need, when it comes down to the specifics the line may get a little fuzzy. Sure, money is tight this week but I am going to splurge and get steaks for the family.
No one is discounting the fact that you need to eat but must it be steak? Couldn’t you settle for some ground beef that is on sale and make meatloaf instead?
Herein lays the problem. We don’t want meatloaf. We want steak. We want the better stuff and so once again I say, spending isn’t the problem. We just don’t know how to not spend.
Spending isn’t the problem because we have these little plastic cards that tell us to go ahead and swipe away. It doesn’t matter that the money isn’t in the bank. We will just pay it back at a later time.
Free financing for one year? Great, I can get away with putting off payments until I get hit with a big one next year. So we spend, spend and spend some more.
If one of your New Year’s Resolutions was to make some changes in the financial department, stop spending. Stop spending just to spend. Take the time to make an informed decision.
Is what I am about to buy truly a need or is it a want? If you don’t have the money for it and it’s only a want, learn to have some self-control. In the end you will be better off for it and who knows? You just might get to that place where you can freely purchase those wants.
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