Most people who are spenders don’t have a grip on their finances. They’re usually in debt and have no idea where their money is going. For spenders to have money, they believe that they need a larger income. Not true. A person who has conditioned themselves to spend will do more spending when they receive more funds.
Savers, on the other hand, have conditioned themselves to save the extra money they get. Most savers receive great satisfaction from seeing their net worth grow. That provides them with the motivation to save even more so they can have further freedom and wealth.
More than half of Americans making six figures are living pay cheque to pay cheque. Some athletes who had millions are now broke. So a higher income won’t help most spenders have money. If more money isn’t the solution, what is?
Conditioning
If you have no money, it’s because you have conditioned yourself to be a spender. When a friend of mine asked me if money was a priority to me, I answered, “Of course it is. How can it not be? I want money.”
She suggested I examine my priorities. I thought money was a priority to me, but it wasn’t. What was more important to me was having a luxury car and living in a fancy neighbourhood. Just those two expenses were almost 60% of my income. And don’t get me started on the consumer debt I had because I needed all the latest devices.
It turned out that I prioritised the satisfaction of seeing people impressed by my possessions, even though they were financed.
If money was a priority to me, I would’ve bought an affordable car for cash and had a roommate to share the rent in a decent neighbourhood. Since I valued possessions, I spent money on them. And when I didn’t have the money to buy them, I borrowed it.
The only way for a spender to have money is to recondition him/herself to become a saver.
How do you do that?
Hitting Rock Bottom
In most cases, the only time when people make a foundational change is when they hit rock bottom. That happened to me when I lost everything and literally ended up on the street. The best part about being homeless is that I no longer cared about what others thought about me.
I just stopped giving a damn.
When I let go of other’s people’s perceptions of me, I started living my life for myself. No longer did I buy things to impress others, but I was more concerned about saving money to never end up on the street again.
You don’t have to be homeless to make a drastic change. If you’re mentally fatigued from scraping by every month, you should have enough motivation to make a drastic change. As long as you think that you’re doing okay and surviving somehow, you won’t make a change.
What does making a change mean?
Live on Less Than You Make
I know—I’ve just blown your mind with this piece of information. It’s revolutionary and deserves a Noble prize. But seriously, though. If living on less than you make wasn’t a profound concept, then it should be easy to do. Yet, it’s not. Everybody knows they should do it, but they don’t.
It’s because they’re concerned about status and comfort—these two things will ruin you financially.
When you stop caring about what other’s think about your lifestyle and you live below your means, you no longer care about status and comfort. You’re prepared to be slightly uncomfortable to have money at the end of the month. Because having an emergency account and expenses covered for six months gives you peace of mind. And there’s no better comfort than that.
A Challenge
I challenge you to analyse your expenses and reduce all of them. Find a solution to reducing each expense and don’t come up with excuses about not being able to. Stop eating out, rent out a bedroom, sell your car and don’t invest until you have paid off every debt other than your home.
Sell your stuff and get rid of your pet. You can’t afford a pet and the junk in your home is partially the reason for you not having money.
You also need to know the biggest financial mistake to avoid. Not making this one mistake will advance you financially.
When you get the urge to spend, leave the house and go for a walk. Don’t take your phone, wallet or other resources with you, enabling you to make purchases.
Getting rid of your junk, reducing your expenses and suppressing the urge to spend will condition you to live on less. The longer you remain disciplined, the more the conditioning to be a saver will be entrenched. If you veer off the path, get back on it ASAP and reflect on how badly you felt about spending.
Overspending gives you headaches, increases your debt and possibly results in sleepless nights. Opt for having money by not giving a damn about what others think of you, and don’t be afraid of discomfort. It will be good for you in the long run and will condition you to live on less, making you realise that you actually didn’t need the junk that got you into a financial rut.
The key solution for spenders to have more money is by reducing their expenses. A higher income isn’t a solution because a spender will have more money to spend and won’t think in terms of saving the additional funds.
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