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And why people who do this experience financial guilt
Many of my friends have money.
Some of them have healthy habits.
Some don’t.
One in particular and I had a recent conversation about money, and they told me they don’t save a single dime.
Everything that comes in and goes is how they plan to continue conducting their finances until further notice.
They’re young. They have a lot of time to make a different choice, but time moves quickly. Hopefully, they decide to start investing soon, so they don’t have to work as hard to build wealth.
Spending Everything You Have Is Common
If most people are in debt, they’re spending not only every dollar they have but also money they don’t have.
There is only one result when you spend every dollar you earn, you end up broke, without an emergency fund or savings.
Spending everything you earn is a habit that we develop.
Saving a percentage of what you earn is also a habit we develop.
If one struggles to save, they can work to develop the habit and spend less of their money.
Start with $1.00 a day if you’re struggling, and then gradually work your way up to $2, $3, $4, $5, $6, $7, $8, $9, $10, and so on. The goal is to save the percentage of income necessary (on a monthly basis) to reach your financial goals.
3 Things You Should Set In Place Before Spending Everything You Got
If you enjoy spending, I am here to tell you there is nothing wrong with you. Enjoy life. You probably work hard to earn the money you do.
My only recommendation is that you don’t allow your hard work to go to waste by not putting your money to work.
The first thing many people do when they get paid is spend it. Three things you should do before you start spending your money include:
Develop your emergency fund (3–12 months of expenses).
Determine your savings/retirement goal.
Develop the habit necessary to reach these two goals. Once you’re on track, you should grant yourself more liberty to spend money as desired.
Why People Experience Financial Guilt
Many deal with this feeling because they know they’re off track financially.
Instead of taking action, they settle for feeling guilty. But you can take action right now. It’s hard to take the first step, but once you do, it gets easier.
One of my friends never utilized a budget. Once they got it, they could effectively manage their money, save, and build an excellent investment egg.
It all started with deviating from one unproductive habit to a more productive one.
There will always be resistance to positive change, but you must focus on the long-term reward if you want to build wealth.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.