Why do some people enjoy spending money and others prefer to save?
Why do some people retire with little to live on and others have more than they can spend?
Why do some people struggle with money and others covet it?
Yes, earnings potential will be a factor, but even amongst the affluent there is a wide variation between attitudes to and behaviours with money
You are the sum of your experiences and beliefs from the past.
Your experiences and observations shape your values and beliefs: political, social, religious, health, economic and ethical. Growing up in a working-class area with working-class parents increases the likelihood of adopting left-leaning political views. If you witnessed conflict between your parents you are more likely to struggle with relationships as an adult.
However, two people with similar experiences may be influenced differently. Someone who grew up working-class may wish to break the shackles; the person who experienced conflict may put all their energy into keeping their relationships strong.
Our relationship with money is also heavily influenced by the past.
Money may have been scarce in childhood causing one person to adopt a scarcity mindset, whereas another may wish to avoid such limitations for them and their family.
Someone whose parents never spent money on luxuries or treats may have learned the need for temperance. Or they may shun thriftiness and choose to spend rather than save their money.
Someone who saw their parents argue about money may struggle to deal with it when they have it and prefer to give it away. Or they may become secretive about money so as not to talk about it.
Someone who felt they never had enough as a child may build up large debt in adulthood to compensate or take bigger financial risks in an ongoing pursuit for more.
If you continue to do what you have always done, you will continue to get what you have always got.
Until there is a change in belief there won’t be a behaviour change. And, if there is no change in behaviour the outcomes will not change: not having enough money (or believing you don’t have enough), not being able to talk about money or not being able to enjoy what you have.
You continue to spend rather than save for retirement. Or, you are saving hard for tomorrow and not enjoying today.
You may be reading this and be financially comfortable. You have been a diligent saver and are in a position of financial security and freedom. If so, great. But, I wonder if at some level you have not allowed yourself to enjoy your money?
Perhaps, even though you intuitively know you have enough, subconsciously you are fearful you don’t. This fear is preventing you from enjoying it properly. You could treat yourselves to more meals out or a more expensive holiday. Or, giving money to the kids now while they need it, rather than waiting until they are retired themselves.
Will you look back on this time of your life and wish you had allowed yourself to enjoy yourself that little bit more? What are you not doing that one day you wish you did do?
Challenging yourself on your money behaviours and beliefs provides the opportunity to change your future to one that will serve you better.
