Developing Discipline in Spending

We know we should cut expenses, we know we should save--we know, we know…blah, blah, blah. But do we do it? Maybe yes, maybe no. For those of us who answered no, I think what largely dictates our spending is our psychological relationships with money. Perhaps we subconsciously think that buying more will bring happiness by filling some void we have. Perhaps we value being able to keep up with the Jones’, whether we financially can or not. Maybe we despise money and are unwilling to let it rule our lives so we consequently do little planning ahead and end up even spending more. Or maybe we’re just lazy. Although knowing why you have trouble limiting spending is helpful in eliminating the problem, the end result is the same regardless of what particular element you’re ailing from: undisciplined spending leads to financial uncertainty and bleak futures.

Often we think the answer is just earning more. We just need that second job or a few more hours of work a week, and then our budgets will be fine. Then our spending won’t matter. Right? No! Whether you start out with $20 or $20 million, it doesn’t matter. With uncontrollable spending habits, you will never make enough. There is always something else that seems to be a necessity and always something else that just can’t wait until the next paycheck. This fundamental rule explains how it is that millionaires end up filing bankruptcy. No amount of money will ever be enough for undisciplined spenders. The answer is not in earning more, but in spending less.