It seemed to be much easier to describe bad spending habits than to write an article about how to change them.

And it is quite clear why: many people have these bad spending habits, but the correct way to change them varies individually.

1. Parents’ example. If you spend the way you spend because of your parents and their example and you are 19 at that time – it is okay. But if you are 30 and you are still blaming your parents for your bad habits – it is your choice to do so!  You can choose to blame them until the end of your life, instead of sitting down and writing a list about what they did with their assets, what you think they did wrong and why.  Put that list on the door so it will be the last thing you see  before leaving your home on the way to work every day.  Promise to yourself to never return to your old spending habits.  You might also need to go to psychotherapist and talk with him or her about your childhood (if you are still in a codependent relationship with your parents).

2. Advertising. Mr. Warren Buffett,one of the best investors  ever known, loves to say,” Think independently!” He suggests that we apply this advise toward investment, but life is also an investment so why not apply this statement here.  Do not look at the advertising – think independently! Every time you are in a rush to buy a new clothes or shoes or a device – stop for a second and ask yourself several simple questions:

WHY do I want to buy this thing?

Is it my wish or somebody else’s?

For how long have I been thinking of buying this thing?

Do you already have something similar at home? Is there space for something new?

Can I afford it?

Can I live without it? Will this purchase really make me happy?

 

After answering all these questions you can form a text in your head that easily will turn you back and take you out of the shop.

 3. Movies and articles.  If you have a role model who is a model in a magazine, movie star or Forbes list inhabitant you are probably taking part in a bad habit called “comparison.”  You compare yourself with them; envy them and their fame, “toys” and things – this leads you to disappointment all the time, because these people will always be richer, more beautiful, thinner, wealthier, happier, healthier, you name it than you, even if they are not actually so in real life.   When you put them up on a pedestal these people become larger than life and their positive attributes are amplified in your head, while their negative  attributes are minimized.  Instead, try to compare yourself today with yourself yesterday and plan your life using your personality and reality as a starting point. Plan your expenses by the same model.

4. We want to be somebody. Go back to the point 2 and ask yourself WHY?  Stop showing off and pretending and analyze your behavior – why aren’t you investing your time in being somebody you are instead of choosing to pretend to be somebody else by spending extra money and life energy!?  It is our precious life!!! We only get one!!!

5. Spending makes us happier. Well, it is difficult to argue, as this is scientifically proven fact. Money does make us happier (and especially when we spend it on the needs of others).

As Coco Chanel used to say, “The best things in life are free. The second best are very expensive”. So do not go for the second best, go to the first best (for now).

There are some things which still can make us happier but they are free or almost free or their price is so low that does not matter. For example:

a) Books – reading books. Do not buy a book, loan a book from the library. Or go to Youtube and listen to audiobooks, like Robert Kiyosaki – they are very useful in changing your attitude towards money.

b) Instead of eating out very often, having drinks and a dinner with friends you can go to the gym. I bet you it will be cheaper and you will be healthier. Or start a running club, ice skating, power walking, etc. All these activities are almost free.

c) Listen to music – nowadays you do not need to buy a disc. Youtube and Spotify among others are there for you free.

d) Photography – if you have an ok digital camera – use it, even if it’s just your cell phone! Choose a subject, make 12 pictures to tell a story and show it to your friends!

e) Write a book/ blog – maybe you’ll start blogging, writing short stories, etc. Whatever you do – it brings you better things to your life, helps you express yourself and makes you a creator!

f) Stop drinking alcohol – in Sweden alcohol is twice more expensive than in other EU countries, but water is clean and available to everybody.

Etc…

6. It is NOW. Yes, it takes time.  A tremendous amount of time to make a perfect body, to earn money and buy and apartment or a car, but result is worth it!  To be able to continue your battle for the Super prize you need constantly picture your goal. One friend of mine Philip was dreaming about red sport auto all his childhood.  During his years as a student, he came to the conclusion that he couldn’t wait any more and started working like hell to get closer to his dream. Philip cut out the picture of the car from the magazine and glued it to the mirror in the bathroom. Every morning when he was brushing his teeth he was looking at this picture and knew exactly why he was not going out or buying a new sweater that day. He pictured his goal all the time and it helped him to follow it.

 

What are you dreaming about and how are your bad spending habits not allowing your dreams to come true?