I have been SO encouraged by the great number of you who have responded to this series by e-mailing me (which I always welcome) and reaching out through Facebook and the blog. This week, we’re focusing on what I consider to be the emotional or spiritual side of debt reduction. Next week, we’ll begin more nuts and bolts tactics and follow with simple money saving tips in the third week. Before you get your finances straight, you have to get your head straight. And I’m hoping that you’re beginning to get a good picture of what that looks like.
Bottom line, I never want you to read the $75K+ debt paid off figure and think we magically arrived at that destination. It took many small steps to get there (and more small and big steps to go until we’re completely finished). We didn’t sell a car, a piece of land, an RV or camper, or inherit money to pay down that much. We have basically slogged away at it one dollar at a time. Anyone can do what we’ve done.
Day 4: Distinguish the Difference between Needs and Wants
Anyone who has every had a toddler or seen one in the grocery store knows that the difference between wants and needs can be in the eye of the beholder. While you’re less likely to throw yourself on the floor in a fit of screams and tears, many adults still struggle with the age old question “Is it a want or is it a need?”
Now hang with me, because it will be VERY natural to push back on some of these sentences (I’m looking at myself which is quite an odd sensation) if you have a particular passion or predisposed set of beliefs. I’m not preaching at you, just trying to get you to think about money and life.
“But we need our camper for family time.”
“She needs those gymnastic/dance/piano lessons to develop confidence.”
“Christmas just isn’t Christmas without gifts.”*
“We have to have cable. Who doesn’t have cable?!”
“Everyone takes vacations.”
“It’s been a hard day/week/month. I need that Latte.”
“I have to eat out at lunchtime because of my job.”
“But I need new a pair of jeans.”
More than once, I’ve found myself in the trap of thinking that something was a need when really it’s a want. As you scrutinize your finances over the next 27 days (and with every shopping trip you make), be sure to ask the question is it a want or need.
I understand everyone likes an occasional splurge (even the Queen!). And I am totally fine with that – if it’s budgeted for AND you have cash to pay for it. No credit cards, no payment plans allowed if you really want to be out of debt. In fact, paying cash and planning ahead (rather than grabbing a quick meal out because you are tired) is much more enjoyable.
So dig deep, Money Saving Lords and Ladies. Challenge your spending. Ask the want or need question for every purchase. You might be surprised where you can save.
*I’m talking about adults here. Children should be blessed reasonable amount of Christmas gifts if you have a budget set up for it. No credit cards.
