Whenever you’re browsing stuff online, you probably had the compulsion to buy. Few thoughts will hold you back, but the impulse will kick in strongly. Now, if you’re financially disciplined, you can recognize the temptations and step away from them. Well, the same thing can be said with loans. You’ll probably be tempted to borrow from time to time.
Do you want to become a better financial planner? Here are some of the common fixations that you must address:
1. The Need to Buy New Stuff
Technology is fantastic, but it doesn’t mean that you must purchase new gadgets from time to time. Yet, technology is ever advancing, and in order to make money on that technology you may need to convince people that yesterday’s great thing is nothing compared to today’s great thing. If you’re feeling enticed to drop a lot of money on the latest and greatest version of a perfectly functional thing you already have, just take a moment and ask yourself if you really need to spend that money.
2. The Need for High-Quality and Fancy Stuff
Some products come with lifetime guarantees. Some are just really expensive. Be realistic when you’re thinking about buying the most expensive option on the market. Why is it so expensive? Does the price difference outweigh the difference in quality? Don’t just assume that the most expensive is the best. Sometimes it is, and a lot of times it isn’t.
3. The Need for Time-Savers
Specialized single-function items can seem really tantalizing. “This is going to make splitting mangos so much easier!” But you really need to slow down and consider how much actual use certain “time-saving” tools are going to get. Is it worth the money and the space it will inevitably take up?
4. The Brand Fallacy
Your parents have probably told you that great brand means great quality. That’s still usually the case. There are always going to be instances where certain name brand items don’t have a suitable cheaper alternative and that’s fine. The key is to not just assume that name brands are always better.
5. The Reputation Card
Being good is very relative – you may be good to some, but not to others. If you play the reputation card, you’ll most likely reward yourself often. One of the dangers of using this attitude is that you can rationalize your spending habits. To prevent this, keep an eye on the reward that you want. Avail it once or twice per month, but not often.
If you can address all of the mentioned needs, your financial freedom will be within reach. Just be patient and always stick to your monthly budget plan.