Are You a Smart Spender?

HERE IS WHAT HAPPENS WHEN YOU ALIGN YOUR PURCHASES WITH YOUR VALUES

Vivimos in an age of consumerism. From the time we were kids we have been conditioned to place enormous value on material things. The nice car, the big house, the designer clothes. These are the exclusive circles so many of us keep trying to enter. And we often convince ourselves that once we get those things, we will finally be happy. The problem is that people are not only lying to themselves. More and more often we see people going bankrupt because they live with that mindset.

SHORT-TERM HAPPINESS

Think about the last exciting purchase you made. How long did that rush last? Chances are the happiness faded relatively fast. The pleasure we get from most of our purchases is only temporary. When it disappears, it is replaced by a new craving, and the cycle starts all over again.

That is why people ask themselves, “How is it that I have everything I ever wanted and still feel miserable?” Pleasure is not the same as happiness.

This does not mean you should never spend, hoard every cent, or live in scarcity hoping happiness will appear some other way. It does mean you must become conscious and careful about where your money goes.

BUILD A STRATEGY

You can look at money in two ways. Every dollar you spend is either a slice of what you earned that you are now trading for something you want, or it is a small step toward something bigger you are building for your future.

EVERY EXPENSE COUNTS

Try counting how many times you stop at the corner coffee shop or the convenience store when a craving hits. How many times do you eat out each week or each month? All those small expenses add up. Because each one feels like little money, you never notice what you are really spending by the end of the year. Of all those purchases, how many actually add value or lasting happiness to your life? The odds are close to zero.

When you cut those habits, you will notice your financial health starts growing exponentially. Money you never saw before will begin to appear in your account, giving you room to save and invest. When you keep taking that step, the returns on the things you do choose to spend on will deliver long-term happiness.

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HIGH-LEVEL PURCHASES

Now look at your spending on more expensive products and services. How often do you buy designer clothes each month? How often do you shop online? Do you upgrade your iPhone every time a new model drops?

How much money did you spend on that kind of shopping in the last 12 months? How much happier do you feel today compared with a year ago?

To cut those expenses, you first need to understand where the urge comes from so you can manage your emotions. That is essential if you want financial and emotional intelligence and if you want to start making more logical, smarter decisions.

WHERE IS THE VALUE?

When we make those decisions, which are really impulses, we join everyone else who looks for happiness in what they acquire instead of looking where it can have long-term impact: your relationships, your health, your mind… and your money. Because when people spend without thinking clearly, most of them live in constant worry about money, wondering how much will be left at the end of the month, whether they can pay the credit card, the mortgage, and the bills.

Spending money on things will not fill you with happiness. On the contrary, it will bring stress and confusion. Avoid those problems by pausing before you buy and reflecting on the real reasons pushing you to get that product or service. Is it pure habit? Do you simply want it? Or do you feel you need it to fill a deeper need in your soul, mind, and heart?

THE REAL VALUE OF YOUR WEALTH

Many people believe you are rich because you have a lot of money, houses, cars, vacations, and so on. The truth is that wealth can be measured in many ways, and there are many paths to it. Real wealth can be measured by the happiness you feel when you wake up each morning no matter what the day holds. It is about enjoying every moment despite your problems. It is about building a life you feel proud of, not because you have thousands of things more than your neighbor, but because you know you would not change a thing, since it would be impossible to feel more grateful and happy than you do right now.

Start changing your trajectory today with simple steps. Analyze your expenses, your healthy and less healthy habits, cut what needs to be cut, and open your eyes to what you already have. You may discover that everything you need has been with you for a long time.

If you want to learn more about your financial health and how to create a better life, join us at Amo de Mi Dinero. And if you want to discover yourself from the inside, come to Amo de Mi Destino to open your mind to new opportunities you never realized were within reach.