FinanceDogma – Finance, loans, creditcard and mortgages

February 21, 2011

Make long term goals to streamline your spending

Filed under: Finance — Tags: — admin @ 1:12 pm

As hard as we all try to save money and spend less, one thing quickly becomes apparent… even if you make a good wage and have a great, steady job… the money always seems to go somewhere! And there is a lot of truth to the simple statement that says money was made to be spent! We may not like the guy who first said this, but in the end it seems that he was right. We work to make money so that we can, inevitably and over the course of time, spend it on the things that we need and want to have.

So, taking this principle into account, one might say that saving money is not so big a question. Rather, shouldn’t the question we ask ourselves be “how is the most effective way to spend the money that I have”? This is an interesting thought, if you really think about it. And, as crazy as it sounds at first, you have to agree that there is a measure of truth to it. How can we streamline our spending so that we spend our money in the most effective and meaningful way?

Well, there are a lot of ways to answer this question, but here are a few tidbits to nibble at in the meantime.

First of all, you need to figure out what you want to be doing in a year, five years, ten years, or even forty years down the road. Do you have any idea where you want to be, or what you want to have in ten years? If you do, then you are actually a step ahead of the crowd! Most people do not think this far in advance, but thinking and making some tough decisions now rather than later can actually pay huge profits down the road.

For example, do you want to own a restaurant at some point? Well, if you do, then you should streamline your spending so that the money you spend NOW impacts that plan in a positive way LATER! So, if you have to choose between a night out to the movies or a new cookbook, buying a cookbook might actually make more sense in the long run. It might not seem as fun NOW, but in ten years you will look back and not feel like that money was wasted as you might if you spend it going out to the movies.

This is truly a deep subject, but it is definitely something to consider as you plan your budget and spend your money. You only have so much of it… so why not spend it in the wisest and most well-planned fashion possible? It might just make the difference between having enough to get you to where you want to be some day, or falling short along the way.

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