Whether paper, coin, plastic, check or electronic transfer, there are many and varied ways that our money just goes!
Whether it’s a wad of currency in your pocket, a piece of plastic in your wallet, a jar full of coins, or paper checks in a checkbook, the main problem with money is it just goes! And, sometimes it goes quickly. Why is it that money seems to slip through our fingers so quickly? I believe the answer is found in the breadth of things one might spend it on.
Whether it’s a product, service, investment opportunity, real estate, housing, transportation, food, drink, or leisure activity, there is no end to the wide range of things that money can buy. And, the more money we have to spend in a discretionary manner, the more apt we are to make unwise and perhaps even reckless decisions.
I have a friend, his nickname is “Crazy Bob,” and he has earned his nickname well. He’s been quite reckless when it comes to money. One day, we were talking with a mutual friend of ours about the economy and the prospect of hyper-inflation, and the topic of “money or stuff” presented itself. We discussed how during inflationary times, the value of money erodes, whereas the value of physical assets can increase or at least be retained. When I said, “You know the problem with having money?” my friend Bob blurted out, “It just goes!!!”
I immediately agreed with his crisp insight…it was as if he was reading my mind. And, I was a bit surprised. Indeed, Bob had ample experience with money just going out the door, but he also had the good sense to articulate the problem with having it accessible to him.
Realizing that money is essential for daily transactions, how might we help keep our money from going too fast and too often? Here are some things to think about:
Focus on needs, not wants. That’s easier said than done, but it’s at the core of how our money gets wasted. Too often, we trade our money for near-term pleasure at the expense of our longer-term financial security. Along with that, it’s key that we distinguish between importance versus urgency, for often an artificial sense of urgency can cause us to spend money.
Keep your money out of your hands. If your money is in the bank, stashed away in a safe, or tied up in investments, it’s more difficult to spend. Any inconvenience associated with spending it will likely give you opportunity to reconsider how you’re going to use it, and that might be all you need to put the financial brakes on.
Convert your money into things that aren’t readily convertible back to money. Real estate is an example that comes to mind. Even in a generally depressed marketplace, there are properties in local markets that will increase in value. I like the idea of land, as Will Rogers once said, “They ain’t making any more of it.”
Invest your money in things that make you more of it. Whether you’re thinking about traditional investments like the stock market or mutual funds, or an individual retirement account, if your money is working to make you more money, you’ll be less likely to take that money “off the job.”
Stay busy with activities that create wealth or are investments in your future. Too often, many of us see spending money as a legitimate leisure time activity in our lives. It’s a type of sport that some of us engage in. If we’re busy with other activities, there is less time for spending money. It’s best if we choose activities like employment, where our time and efforts help create wealth instead of spend it.
Of course, there are many other ways to put the brakes on money that seems to just go. Consider for a moment what your weaknesses might be and then tailor a solution that works for you. If one of your weakness is buying drinks for your friends, you might consider finding new friends (perhaps ones who will buy you drinks,) go to a different bar where you can make new friends, stop drinking in public establishments, or simply stop drinking altogether. At least in this example, we can see that for each situation where you find your money slipping through your fingertips, there could be any number of potential solutions.
And, if anyone knows of how to get money to sit, stay, or come when called, please let us all know. This would solve a lot of problems for many of it. In the meantime, we’d be well advised to find a way to get a leash on it, as that dog doesn’t like to stay in the yard.
