Monday - June 17th, 2024
Apple News
×

What can we help you find?

Open Menu

How You Spend Money Part 3 – What are Your Money Habits?

How You Spend Money - What Are Your Money Habits?

This is the third in a series of articles that deal with our relationship with money.  (You can read the other ones here). Most of this is based on the work of Morgan Housel, the author of The Psychology of Money.

3. Frugality Inertia: A lifetime of good savings habits can’t be transitioned to a spending phase.

Morgan says that what many people really want from money is the ability to stop thinking about it. They want to have enough money so that they can stop thinking about it and focus on other stuff.

He goes on to say, “But that ultimate goal can break down when your relationship with money becomes an ingrained part of your personality. You struggle to break away from focusing on money because the focus itself is a big part of who you are.”

This comes into focus for me when I check the posted prices at the gas station and I look for the best price. The reality is that it doesn’t matter what it is.

Whether it’s $3 per gallon or $5 per gallon I can afford it easily. And it’s paid for it from our apartment building income and it is tax deductible.

Due to having gone broke three times by the time I was 50, I cannot break the practice of being careful about how I spend my money.

If you’ve developed a process of living below your income and saving money, you deserve congratulations. You might also find that you cannot stop being careful, tracking your spending, and continuing to save well beyond the time you need to do that.

Do you still deserve congratulations if you cannot stop that habit and in your Retirement years, what I call the time you Create Complete Financial Choice®? Isn’t that the time to start spending your assets?

Our travel agent said it so well, “If you don’t fly first class while you’re alive, your children will be flying first class after you die.

Who should be enjoying our money more, my wife and I, or our children?

As a Certified Financial Planner®, I’ve seen the biggest challenge was getting clients to spend money in Retirement; even appropriate amounts of money.

I understand this personally. Frugality and savings become became such a big part of how I operated that I can’t easily switch gears.

For some people, that’s actually fine. For me I also think it’s okay. Watching our money compound gives us as much pleasure as spending it.

Are you willing to recognize you’ve reached your goal, or do you keep Moving it up? Will your assets support your standard of living with no more accumulation?

To Your Prosperity,

Rennie

The post How You Spend Money Part 3 – What are Your Money Habits? first appeared on Rennie Gabriel.

Rennie Gabriel The Financial Coach

After two divorces and a business failure Rennie went from broke at age 50 to multi-millionaire after learning the three secrets of the wealthy (despite failing high school math). Rennie is a TEDx speaker and he now donates 100% of the profits from his books and online programs to rescue dogs and soldiers. His award winning, best-selling book, Wealth On Any Income has been translated into eight languages.

Register to become a Member of BabyBoomer.org

Recent Active Contributors

Show More

Keep Up To Date With Our Latest Baby Boomer News & Offers!

Sign Up for Our FREE Newsletter

Name(Required)
This field is for validation purposes and should be left unchanged.