Paula’s note: Hi there! I’m out of town for two weeks, so today Kyle James is guest posting in my absence. Sorry, also, if I’m slow to reply to comments — I’m camping with no electricity, running water or internet access. Without further ado: Here’s Kyle with 5 ways to ruin your finances.
We are constantly inundated with information and news stories about ways to preserve and grow our finances. So I thought it was time to turn this information on it’s ear and come up with the five best ways to not be able to afford anything.
#5: Have Zero Impulse Control
When you’re at Best Buy and you see something bright and shiny, typically with a half eaten Macintosh apple on it, buy it quickly and without thought. Why deprive your own happiness? You deserve the Apple iPad2!
#4: Be Mean
I had a very successful friend tell me, “Kyle, be nice to the people on the way up the success ladder, because they will be there when you’re on the way down.” So go ahead and be mean to fellow employees. Never smile. Be unreasonable. Soon the only thing you’ll be able to afford is 50 cents for the local paper so you can look at job listings.
#3: Assume a Credit Card is Free Money
Ever get those pre-approved credit card applications in the mail? Consider those to be winning lottery tickets! You just won a $4,500 credit card — start spending immediately!
#2: Be Lazy
Be happy with the status-quo. Don’t try to improve your skill set or challenge yourself to learn new skills. In other words, be lazy. This is a great way to guarantee you won’t move up your career ladder and increase your earning power.
#1: Let Others Determine Your Value of Stuff
Let social signals and the ‘consumerism monster’ control your brain. Buy the $500 Coach purse you’ve been coveting, thinking it will increase your social status and happiness. Even if you can afford the purse, where does it end? At what point will stuff stop bringing you happiness. Typically, it will be when you can’t afford your lifestyle.
The bottom-line is balance. Success means finding balance in all things: work, finances and spending. You can be make a great income, but if you spend more than you make, does it really matter?
Likewise, you can make a very small income, be grateful for the things you have, and feel satisfied. Better yet, you could improve your income and feel the security of knowing that you’re taking care of your finances and retirement. Then you will truly be able to afford anything.
About The Author: Since 2001, Kyle James has owned and operated Rather-Be-Shopping.com which specializes in online coupon codes and handpicked hot deals on individual products.
Note from Paula: Please excuse me for being slow to approve and reply to comments — I’m cut off from all internet access until Sept. 7!
So true…when you purchase one thing to fill a “hole” in your life, it often feels as if another one just comes forward to take its place. I find my “success” comes from knocking out my goals not necessarily income levels. I may not make a lot now but I feel more contentment from what I’ve been able to do, not necessarily what I’ve been able to buy!
Great points Shannyn on goal setting. It is amazing how good it can feel to set and accomplish goals. Those are the things that build character and really add to contentment in life!
It is all so true. I have a memeber of my family who no matter how much money she makes, she is always broke. Yet she manages to have the latest in all tech, goes on lavish vacations, etc. It really gets old listening to her gripe about her finances. All of her decisions were made out of keeping up with the Joneses. It makes me sick to my stomach but I try to be supportive. And it is really hard because I know where she is heading. It is hard to help the folks that don’t really want your help. Last month she asked me for $1500. I thought she needed it for an emergency because things have been tight for her. But she wanted to buy a horse. I am still very angry with her. Of course I told her no. That’s family for you.
@Kathy — she wanted a horse?? I totally understand why you’re angry with her. I would be too.
Unfortunately, I can relate …. there are two people who borrowed a significant amount of money from a close friend of mine. Both borrowers say they can’t “afford” to repay him, but both borrowers CAN magically afford to go on exotic vacations. I find that to be incredibly rude — but its also the fault of the lender for not setting more firm deadlines, expectations and boundaries.
Zero Impulse… yah, it can be a problem can’t it. Some good ideas!
Definitely agree on the ‘be mean’ front. It’s amazing how short-sighted some people can be, so ready just to trample all over people to get to the top.
Great tips!
I think “Consumerism” might need to be renamed “consumption disorder” – and we’ve all been guilty of it. Being lazy with my investing is something I am really guilty of too, I’ve always been light on the consumer side, heavy on the earning and saving. I need to up my investing skills, still.
@Financial Tips — Being light on spending, and heaving on earning/saving, is a GREAT position to be in. When you start getting involved with investing, make sure you stay balanced. Don’t take on too much risk, but don’t hide from risk either — be wise about it.
Great comments. When it comes to investing, I always follow the rule of what my financial planner told me several years ago. Take your age and subtract it from 100. So if your 30 years old, your number would be 70. Thus you should be invested in 70% stocks, 30% bonds. I think it is a really old school tip but it has served my wife and I well.
This is a great article. The impulse buying is best learned when you have money. Before I got married and had kids I had plenty of extra money. Impulse buying was easy because I had the extra dough. But now with a wife, kids and responsibility I have had to learn to control that impulse buying.
Learn it while you have money and when you do not have money it is a lot easier to control.
@Ben — I’m glad you’re learning about controlling impulse buying! You’re right; for some people these lessons are easiest to learn when you have few responsibilities — although others find it “easiest” to learn when the pressure is on.
This is very good advice. I have a lot of debt primarily in the form of credit cards. I’m on top of it now and paying it off with regular payments, but I wish I had been more disciplined in the past. I will never again use a credit card for more than I can afford to pay at the end of the month.
@Jason — Good for you for being on top of it now! Life isn’t about “never” making mistakes. It’s about learning and recovering from those mistakes in order to be a stronger, more disciplined person in the future.
Well I sincerely liked reading it. This post provided by you is very effective for correct planning.