054: Money Moves in your 20s
Tip 07: Don't be a baller
Tip #7 Don’t be a Baller
It’s typical for humans to fall in this trap. Now, don’t get me wrong, it’s ok to be one, when you have the financial freedom and a ton of money, but not when you have a pile of debt and living in your parent’s basement!
I know you may want to fit in, but remember, it doesn’t matter what other people think! I’ve spent my early twenties buying “stuff” to fit in with peer group. It’s exhausting. I accumulated credit card debt because of that! That’s stupid. I also realized that true friends don’t care if I have the latest car, piece of clothing or cool gadget.
Now life has to be fun, it can’t be just work, work & save. Here is a suggestion:
Make a list of Splurge-Worthy Purchases:
- What are these things or experiences your want so bad? (vacations, new car, designer clothes, latest apple computer?)
- Confirm for yourself that you are going to work extra hard to attain these goals. Remember, these purchase are not “Wants” or “Needs”, they are “Extras”
- Set clear goals (what is the cost of each goal) to help you stay motivated
- Do your math- calculate how much you need to save, (using Money Flow worksheet) beyond your normal savings
The key is to determine exactly what those items or experiences are, how badly you want them and what you are willing to do to save for them. This mindset allows you to stop daydreaming and start working for the things you said you want.