If you ask anyone about how they handle their personal finances they’ll probably say one of two things: they’re investing or they’re saving. The only other option would be excessive spending, which most people aren’t willing to admit they’re doing. But how is “spending” so different from “investing,” and why do we often shutter when we hear that word?

Spending, especially excessive spending, refers to expenses that we accrue and don’t see any real long-term benefit to them. They prevent us from achieving our financial goals and we won’t see a return from them 10 or 20 years down the line. The sad part is that many people who are spending excessively don’t even realize they’re doing it and by the time they do, they’ve fallen behind many of their peers. In this blog, we’re going to shed some light on the idea of excessive spending and help you eliminate it once and for all.

View Money As A Limited Resource

The best way to start spending money more wisely is to change your entire perception of money. Chances are when you receive your paycheck, you have a little extra money left over after paying your bills, groceries, medical expenses, insurances, etc. But whether you have $10 leftover or $1,000, you can view this money in one of two ways — “extra money” or “savings.”

What many people will do in this situation is they’ll go out and recklessly spend immediately after it’s wired to their bank account. This kind of impulse buying is what leads people to become broke later in life. It’s no wonder people have a tendency to spend big right when they get their paycheck. In our modern world, it’s easier than ever to get exactly what you want, right when you want it. Online shopping is becoming easier, more prominent, and more affordable meaning you don’t even have to walk out your door to get what you want. You could easily spend your life’s savings in a matter of seconds online — but that doesn’t mean you should!

Think Big Picture

Take a few minutes to sit down and write down a few “big picture” ideas that you want for your life but haven’t yet achieved. Once you’ve got a good list, go through it and see which ones require some form of funding or financial stability. Chances are, most of them require at least some money to accomplish. This is not uncommon as many of the major goals people set for themselves involve large investments — both time and money.

And there’s nothing wrong with having these kinds of goals, it just means we have to start preparing for them sooner than we would a monthly or yearly goal. So how can you begin to change your scope from narrow to a more big-picture approach? Well, you’ve already written down a list of major goals you’d like to accomplish in your life. This is a great place to start since it gives you some tangible evidence of what you want out of life. From there, take a look at your short-term goals and make sure you aren’t spending so much that you won’t be able to achieve your long-term goals.

Invest Wisely

When you’ve accumulated enough wealth and you’re ready to start investing, you need a plan that will allow you to see significant growth without taking any unnecessary risks. At Safe IRA Investments, we are the leader in safe, secure and collateralized investment opportunities – a refreshing alternative to risky stock investments or low return retirement options. By working with us, you’ll be able to capitalize on our vast expertise in buying and selling trustee sales, tax deed sales, and other undervalued assets. If you have any questions, or you’re ready to get started, don’t hesitate to contact us.