Stop It! Just Stop It!
Every day we are engaged in a battle. You may not realize it but every day there’s a war being waged against you, your lasting happiness and financial success. It’s the War for Your Wallet. How many battles have you won? How often do you surrender?
Our intentions are good. Most of us want to save more and spend less. Most of us aspire to pay for our children’s college education, pay off our debts and retire with financial security. So why do we fail? As a nation we have succumbed to the addiction of relentlessly chasing money and spending it. As a society we have contracted a national illness: moneyholism. As Americans, we are exposed to over 600 ads each day, whether they are on TV, online, in print or at the store. We subconsciously believe that happiness comes from driving the right car, buying a bigger house, or wearing high-end, designer clothes.
The result of our cultural addiction is in the numbers:
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The average American spends $1.33 for every dollar earned.
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Americans have $784 billion in credit card debt.
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70% of Americans don’t have a budget.
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40% of purchases made online are done on impulse.
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88% of American adults admit to impulse purchases in the past year.
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97% of Americans don’t have adequate retirement savings.
So, if this is our reality…your reality, how do you win?
You STOP IT! JUST STOP IT!
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Determine how much you’re really spending and what you’re spending it on.
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Create a budget using online tools that import your spending transactions and can track your progress. We provide our clients with their own personal financial website to do just this.
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Setup automatic savings into accounts allocated for your financial goals. You cannot save in a checking account. Your checking account is a financial alligator and any money left in there will be spent.
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Stop it. Just Stop It. Every time you go to buy something ask yourself, “Do I need this or do I just want it?” Then proudly close your web browser or exit the area immediately.
This is how you win. This is how you get closer to achieving your financial goals. This is how you get closer to real, long-lasting happiness.
Sources:
Cost of Shopping for People in U.S., Bundle. Web., http://www.bundle.com/spending/data/shopping
Padberg, Nancy Shonka, Baby Boomers Control 70% of the U.S. Disposable Income, 20 Aug. 2012. Media Post. Web. http://www.mediapost.com/publications/article/181070/baby-boomers-control-70-of-the-us-disposable-in.html#axzz2MJkGQLc6
Stelter, Brian, 8 Hours a Day Spent on Screens, Study Finds, 26 March. 2009. The New York Times. Web. http://www.nytimes.com/2009/03/27/business/media/27adco.html?_r=1&
Mielach, David, Can’t Resist That Gum? You’re Not Alone, 17 April. 2012. Business News Daily. Web. http://www.businessnewsdaily.com/2370-impulse-purcahse-survey.html
User Interface Engineering, What Causes Customers to Buy on Impulse? Uie.com. Web. http://www.uie.com/publications/whitepapers/ImpulseBuying.pdf
6 Oct. 2010. Spendster.org. Web. http://www.prweb.com/releases/2010/10/prweb4620794.htm
6 Oct. 2010. Spendster.org. Web. http://www.prweb.com/releases/2010/10/prweb4620794.htm
Kim, Susanna, Nearly Half of Americans Have More Credit Card Debt Than Savings, 25 Feb. 2013 ABC News. Web. http://abcnews.go.com/blogs/business/2013/02/nearly-half-of-americans-have-more-credit-card-debt-than-savings/
