You Don't Have to Spend More

Let's talk about clichés for a moment. Of course, you've undoubtedly heard the old adage, "You've got to have money in order to make money;" and the closely related offering, "You have to spend money to make money." Well, it's been proven on countless occasions that those two sayings are certainly not always true. But let's focus our attention on one more; namely, the maxim, "The more you make, the more you spend." Unfortunately, this saying tends to ring true much more often than not.

What is it about money? Sure, it gets us the things we need and want, but what about making preparations for the proverbial "rainy day?" In a society where the economic outlook can be bright one day and dark the next, it would be reasonable to think that saving money would be much more of a priority than it seems to be, wouldn't it? But, sadly for most, that simply isn't the case.

Why? Typically, it's because far too many people operate under the "feast or famine" mentality. When things are good, they lose sight of the future and don't seriously consider that things will ever be bad again (and possibly sooner than later). Tax refunds are an excellent example of this. After working hard all year long, you file your taxes and within a few weeks are 'rewarded' with a very tidy roll of cash. And the question now necessarily becomes, "What are you going to do with all that money?"

Hence, the dilemma that so many find themselves in: on the one hand, they know very well that they should put the money into an account as an emergency fund to guard against future unexpected situations. On the other hand, they've scraped by and made do all year long and now they finally reach a point where they can afford some of the things that they've wanted but just couldn't spare the cash for. That tax refund has, again, come in 'just in time' (doesn't it always?). We've all been there.

But what they overlook is the fact that as soon as they spend that money, they're relegating themselves back into the same financial circumstances all over again. The satisfaction of the 'now' is achieved, but only at the expense of the future. To escape that cycle you must discipline yourself to continue to disregard some of the things that are desired for the greater good of saving your money and putting it to work for you. After all, if you made it through the entire year without that extra money, you can continue to do so and allow that money to do what it should be doing – and that's making you more money.

Runaway spending is a very bad habit – not just for governments, but for the rest of us as well. But we must all come to grips with the fact that the ultimate decision about what we do with our money rests squarely with us. We must shoulder the responsibility and take control of our financial lives. Regardless of one's starting point, there are any number of savings and investing tools and programs available to help move you along the path toward financial independence.

When we make more we just seem to spend more, apparently by human nature. But by no means is it given that we must always do so. Put your hard-earned money to work for you by making the firm decision to save and invest any surplus you get to increase your long-term financial outlook and well-being.