Don't Fall For This Trap!
This is the time where many people are getting raises, bonuses, a tax refund and potentially a stimulus check. Extra cash is fun, right?! Well, maybe. With this extra cash can come important decisions.
When we have money in our account that we didn’t expect or plan for, resisting the urge to splurge is tough. I mean we have waited “patiently” to buy that new furniture we have been eying or “treating” the kids by getting that new PS5. DON’T FALL FOR THE TRAP! It’s not coincidental that major stores have great savings at this time of the year. This is a marketing tactic, and guess what? It works! Don’t let that be you though. Here are some tips on how to avoid falling into the trap of only spending your extra cash instead of making progress on your goals.
Consider Your Priorities
I encourage you to 1st write down all of your current goals. Make sure to list them in order of priority. Now think of this as your destination and the GPS is your financial journey. Slow down enough to ask the question, does this spending get me closer to my goal, or is it taking me on a detour? Then, imagine how it will feel when you stay on track and finally reach that destination!
Check Yourself
Ask yourself, is this worth the money? Chances are it is just the perfect temptation. You have the cash and there’s the sale, so you buy it. There is this immediate gratification of getting what we want right then and there, however, the feel good moment will quickly fade away. If you target this extra money towards paying off a credit card that has been around so long you think it’s a pet, you can experience lasting gratification and a sense of accomplishment every month when you have an extra $200!
Sleep On It
Another way to avoid these mistakes is to sleep on it. No, literally sleep on your decision. This is a great way to differentiate whether this is a spur-of-the-moment impulse or the real deal. It also allows you to practice self-control. Again, it circles back to having the ability to stay focused on your goals.
It is super exciting to receive extra funds that can be a boost when times are tight or you just want a little fun after the challenges of the last 12 months. It is also extremely tempting to spend all of this money on something that simply feels good. I hope that you slow down enough to consider the tips above and determine what money moves will have a lasting and satisfying effect as well.
If you need some help understanding your options, set up a complimentary appointment with me. If you haven’t received a stimulus check and you know you qualify, check the status here.
