The situation when one’s increase in earnings is followed by an increase in expenses is typical. We squander money to possess the things which we don’t really need. Such a relationship between the growth of income and the amount of unnecessary expenses gives us a signal of high level of lifestyle inflation.
The main sign that your financial system is working wrong is your inability to save money. Living it up can be compared to a luxury vintage car, which looks new on the outside, but its engine is worn out so that at any moment it’s ready to stop forever.
Not all the money in the world
A perfect fight against lifestyle inflation is shown in the film “All the Money in the World”. Paul Getty, the main character, is the richest man on earth, who himself washes his clothes, because he doesn’t want to pay a housekeeper.
Once his grandson was kidnapped. The kidnappers demanded a ransom of 17 million dollars, and Getty refused categorically. Paul said that he loved his grandson and found him special, but continued to stand to his guns. The story ends pretty badly.
Due to the fear of losing even a part of his fortune, Paul Getty turned into a real miser, but he did reduce the inflation of his way of life to a minimum. However, we do not encourage you to become like Getty, and therefore we will not talk about such things like the rule of austerity.
We will try not to carry things to extremes and just tell you about two enemies of your budget. Hopefully, our article will help you better understand what causes your difficulties in saving money even when the income is growing.
Advertising is your number one enemy
Everyone knows that advertising is the engine of commerce. Marketers create brands, slogans, styles, which lots of people begin to follow. But the start of sales of a smartphone or a new “affordable” crossover is not a reason to spend all your available funds.
Ask yourself whether you are satisfied with what you have now? Does the equipment you have cope with all challenges?
If the car works well, and the smartphone you bought six months ago still shines, rings and sends instant messages, there is no need to spend money on the same new thing, which costs twice as much. You’d better save your money.
Advertising takes the person as a source of consumption, it sees a human only as a solvent subject. So why not look at goods and services with a reciprocal skepticism?
A put-on is your number two enemy
The modern world is moving at a frenzied pace. People are ready to work for 12-15 hours a day in order not to lose their place in the sun. We understand that in such conditions there is no way without an emotional discharge. And consumption is also a kind of rest.
But there are cases when the purchase of a new gadget becomes a way to emphasize one’s capabilities and show the status, which is sometimes non-existent. Simply put, it is a way to show off.
We can say only one thing. It is rather silly to bear an additional financial burden in order to impress the people around you.
The practical advice will be the following: not to fall into the trap, you should limit the number of “status” things you are going to buy and plan how much you are going to spend on them during the year.
The Roman commanders who entered the capital of the empire after a successful military campaign, had slaves who told them in a whisper “Memento mori!” (“Remember the death!”). Thus, the slaves reminded the triumphants of their helplessness, not even the death, but the circumstances in general.
The stability of one’s financial situation is inseparably linked with the rationality of the person’s spending. Not knowing, but understanding your income and possible expenses allows you to be sagacious and prepared for any turn of your life.
Simple joys of life
By optimizing the expenses, you will reduce the invisible degree of boiling of your financial system. At the end of the month you will have some spare money which will definitely bring you positive emotions.
And what about the savings? Firstly, see above. Secondly, do not forget that money should work! Invest it in business, spend it on training. Let your savings be useful.
In addition, we remind you once again that you do not have to turn into a miser. A gym membership, a family evening at the movies at the end of the week or a dinner with friends in a good café, these things are not something that is too much. Besides, all of them help to recharge your life energy for a long time.
You should not allow overloading your other systems just to save your finance. The main thing is harmony.