Tuesday, December 14, 2010

Just a Smidge of Self Control

Wanna be financially independent and successful? You have got to start with a smidge of self control and self denial. Without these essential elements, your impulses and desires will take over and defeat you every time.

Three Steps to Getting Started

Make a Commitment to Change

Sounds pretty simple, huh? Most of the time, this isn’t accomplished until you get angry or frustrated to the point where you FINALLY realize that you have got to do something different. The path that you have traveled keeps leading you to this point and you are not making any progress. Determination will help you have power over your purchasing impulses. It will not keep you from acquiring your wants and needs but it will help you establish a plan and stick to it.

Learn to Avoid Tempting Situations

You walk into a store to buy something that you need for work when suddenly something shiny catches your attention out of the corner of your eye. I could be anything – a set of golf clubs, a decorative pillow, new shoes – but it is something that you don’t need and didn’t plan on purchasing. Your natural inclination is to satisfy your urge and make the purchase. You must learn to decide if this is a “need” or a “want”. At first, this may not be an easy assessment but, as you develop financial self control, you will learn to step away from the situation and decide.

Reward Your Progress

Most people feel that living on a budget is restrictive and applies “shackles” to your lifestyle. The budget can actually provide you with a tremendous sense of freedom and control over your life – if you live according to your plan. Don’t be afraid to celebrate your victories and your progress. Set a goal and work toward it – rewarding yourself as you achieve each milestone.

Sound simple? It isn’t! Dave Ramsey says “This is not a game. Debt has become a part of who we are. It’s become that spoiled child in the grocery store with their lip stuck out: ‘I want it. I want it. I deserve it because I breathe air.’ It’s an uphill climb in our culture right now, to go against that and say ‘Hey, let’s be grownups here. Let’s be mature, learn to delay pleasure, save up and pay for things.’”