Have you ever heard that saying that money can burn a hole in your pocket? Although you can find many different meanings for this expression, over the past decade I have seen spending run out of control on a personal level. Eating out using to a perk for most families, and now an $80 meal during the week is the norm. Picking up a luxury item only happened on special days like holidays or birthdays, but now people buy them whenever they are in the mood. We have been conditioned over the past decade to always make sure we get the BEST! Of course, why wouldn’t any of want the best if we could afford to buy it with our hard earned money.
Credit cards have given many people power. When you have money in the bank you feel like you have power. With just a swipe of your debit card, you have the power. Yes, because you have money in your pocket (or credit that feels like money) you feel like you can have all of the fancy items that the wealthy people have in America. You can go out tomorrow and sign yourself up for the nicest car. You can go downtown and get the most luxury dinner. You can book yourself the best room at your next vacation destination. You can get yourself the coolest new pocketbook, or that top of the line set of golf clubs.
Here’s the deal. You can do anything with you money, but this doesn’t mean you should do anything with your money. Paying down your debt doesn’t feel all that exciting because you can’t do anything with it like a technology gadget. However, you should pay down all of your debt. Saving for retirement doesn’t get the juices going especially when your 401k plan has a low starting balance. However, you should being paying yourself first and put dollars away for your future. Having money sitting in the bank today earning nothing as your cash reserve could easily set off that forest fire in your pocket. However, you should sit tight because you’ll need that money for a rainy day.
The things that are most important to do with our money often involve having delayed gratification. This is a term most people don’t even recognize anymore in a society that thrives on instant gratification. Just ask yourself next time you are going to make a purchase these following questions. Do I want it? Do I need it? Can I truly afford it? Is this really going to make a difference in my life? Be your own Smokey The Bear and don’t let your money burn a hole in your pocket.
Ted Jenkin, CFP®, AAMS®, AWMA®, CRPC®, CMFC®, CRPS®
Co-CEO and Founder oXYGen Financial, Inc
oXYGen Financial, Inc. co-CEO Ted Jenkin is one of the foremost knowledgeable professionals in giving financial advice and Smart Money Moves to the X and Y Generation.
Phone 1.800.355.9318 or 770.777.0427
Securities and Investment Advisory Services offered through NFP Advisor Services, LLC (NFPAS), Member FINRA/SIPC. Oxygen Financial is not affiliated with NFPAS. NFPAS does not provide tax or legal advice. This site is published for residents of the United States only. Registered Representatives and Investment Advisor Representatives of NFP Advisor Services, LLC (NFPAS) may only conduct business with residents of the states and jurisdictions in which they are properly registered. Therefore, a response to a request for information may be delayed. Not all products and services referenced on this site are available in every state and through every representative or advisor listed. For additional information, please contact NFPAS Compliance Department at 512-697-6000. PLEASE NOTE: The information being provided is strictly as a courtesy. When you link to any of the web sites provided here, you are leaving this web site. NFP Advisor Services, LLC makes no representation as to the completeness or accuracy of information provided at these web sites. Nor is NFP Advisor Services, LLC liable for any direct or indirect technical or system issues or any consequences arising out of your access to or your use of third-party technologies, web sites, information and programs made available through this web site. When you access one of these web sites, you are leaving our web site and assume total responsibility and risk for your use of the web sites you are linking to.