Do you feel guilty about spending too much money? Do you wish that you could save more money?
Most of us feel very guilty after spending money or making a spontaneous purchase. In the moment, euphoria hits us and we don’t think about what we’re actually doing. It’s not until a few hours later that we realize what we’ve done with our money. I wanted to show you how you can spend money like a celebrity (see: foolishly) and not go broke at the end of the day.
Is this a super secret? Do you have to do anything crazy? Not at all. Evert single person reading this has the ability to splurge and not go broke.
How can you spend money like crazy without going broke? Here’s the step-by-step process:
Have an income coming in.
Before you spend any money or do anything, you need to have an income. Without an income or any cash flow, you’re pretty much limited with what you can do. If you don’t have an income then this should be your main priority. If your current income sucks, then you can start freelancing now as well to have more money in your pocket.
Ensure that you’re making payments to your debt.
If you’re out of school and have a mountain of student debt, I highly advise that you make your payments. Aside from the trouble you can get in for not making your payments, it’s important that you meet your financial obligations. It’s also critical that you focus on any credit card debt that you have.
I don’t want to come off as preachy here, but we all know that debt is a bad thing and it needs to be dealt with.
Save your money and pay your bills.
This sort of ties in with the previous points depending on your debt situation. If you have any financial goals, it always makes sense to pay yourself first. This means that you need to put this money aside as soon as you get your paycheck, and not a week later because the money won’t be there.
If you want to go on a trip or buy a car in the near future, you’re going to want to save that money first.
Use the rest of the money to go crazy.
Now it’s time to have some fun. You spend whatever you have left on whatever you want. You can buy all the new shoes or fast food meals with the money that’s left over. You spend this money in any way that you want. Act like a celebrity and don’t worry about your finances.
Those of us that save money aren’t smarter or better than anyone. Those that aren’t broke aren’t necessarily good with money. They just save first and then spend. The opposite is the killer because when you spend first, you never get to save in the real world.
This is why I believe in having guilt-free spending money. We all need to splurge once in a while and have some fun with our money.
Stop when you’re close to zero.
Once you see your checking account get close to zero it’s time to stop and wait until the next paycheck. You don’t want to get into credit card debt or dip into your savings because that would be counter-productive at this point
That’s how you can get your shopping out of your system without going broke.
What will you buy?