What to ask yourself before spending & the Ninja trick that will keep you on track
Do you “invest” your money or do you just spend your money? What’s the difference you ask? It really boils down to how you spend your time, energy, and money and the payoff at the end. When spending money takes you toward your goals, it’s considered an “investment.” An “investment” is a way of paying yourself because the time, energy, and money is being directed toward something important to you.
The other side is spending time, energy, on money on other things that keep you from achieving what you really want. For most people I hear that getting out of debt and creating savings is a huge goal but for some reason they can’t seem to get there. Habits are tough to break.
The Week Spot
Most of us have a week spot; the stuff we spend our money on to feel good or just, well because we’re used to it. Intuitively we know our week spot. Once we acknowledge it, a little discipline and encouragement is necessary to make changes, shift habits, and reach our goals.
Here’s How You Can Turn Spending into “Investing”
Ask Yourself These Questions
Does this purchase get me closer to my goals?
Will I feel satisfied if I spend my money on this?
Are there other solutions?
Know your Goals & Go From Week Spot to Sweet Spot!
Many people I talk to and work with tell me how they would love to get out of debt and save money. I have experienced that many have a tendency to spend $20 or so a week on coffee and sometimes $5 a week on water consistently. I know, we’ve all heard the coffee thing before, but it’s best to start small and with popular week spots such as these. The small price you pay daily adds up to be pretty mighty and can easily be directed toward paying down debt and create savings. Check out how:
DIY and Save a Latte!
Invest in a coffee pot for about $52 and add to that a bag or 2 of coffee grounds each month. At the high end you’d be spending $16/month tops, or $192 for the year.
You would begin to make your money back after a month of having the coffee pot.
• Current Spending – One month of buying coffee @$20/week = $80.00
• DIY – Cost of the coffee pot $52.00 + Coffee $16.00 = $68
• ($80 – $68 ) = $12.00 Savings in the first month!
• Overall savings per year approximately $1,000.
The same is true for the water. You can buy yourself a nice water bottle and fill it up from your tap. The environment loves this choice!
Congratulations, you’re actually paying yourself! You found some money to save, pay down debt, or put to another good use! Once you begin to experience the benefits of doing this you’ll feel the incentive to keep going.
Here’s what I’m not saying
That you should never buy coffee out or water out. The new DIY you buys coffee and water on occasion which becomes a treat!
The “Ninja” Question
When you’re out and about, it’s the question that helps you think on your feet and evaluate whether you’re just spending your money or investing it. Remember an “investment” provides you with an immediate return on your money toward your true goals while spending pushes them further away and therefore a waste of time, energy, and money. The next time you’re out and ready to spend your money on something, ask if this is going to work for you tomorrow, next week, and further down the road. It’s a challenge at first, but it gets easier the more you do it. Stay with it!