What are your money beliefs? Are you someone who can never have a dollar in your wallet without spending it? Or, on the other hand, do you penny-pinch so hard that you never enjoy life? It may be that your beliefs about money are getting in the way.
Money Beliefs: The Spendthrift
Not many people like being considered a “spendthrift” but their behavior reveals a lot about their beliefs about money. They are individuals who spend money in an extravagant, and often irresponsible, way. For example
- They don’t keep track of expenses
- They’re always falling short at the end of the month with bills and getting an overdraft on the bank account
- They make expensive purchases impulsively and without any consideration for other mandatory monthly expenses
Being with a spendthrift is exciting, as money is no barrier at all! That is until the bills come piling in. Spendthrifts aren’t simply ignorant about finances; they enjoy the “high” of a purchase. This can lead to big problems later.
Money Beliefs: The “Spending High”
Have you ever heard of a person who enjoys going to the mall all of the time? They spend a lot of money on clothing, electronics, or other merchandise. These people come home happy and excited about their purchases, but that happiness soon fades. Why? It’s because these individuals get a release of dopamine in their brain when they buy things, which causes a rush. But, when the high fades, they are left with a lot of purchases and bills. There’s even a term for this, it’s called compulsive shopping.
Money Beliefs: The Penny-Pincher
The opposite of the spendthrift and compulsive shopper is the penny-pincher. This is a person who is so careful about spending money that they are sometimes characterized as “cheap” or “stingy”. At first glance, that could be perceived as being thrifty. In reality, this is not the case. A penny pincher:
- Refuses to get new clothing when old pieces are obviously worn-out
- Does not maintain the upkeep on their home, such as replacing old appliances or painting the walls
- May hoard items that they think they will need in the future, thinking then they won’t have to spend additional funds
A penny-pincher has money and resources, yet they are very reluctant to spend anything. This is because they can’t bear spending any money whatsoever. They perceive it as a loss.
Finding a Balance
Money is certainly an important resource for us all, yet it doesn’t have to be a defining factor in our lives. Of course, we need to pay the bills and make sure the lights stay on. It also means being able to know when not to make a purchase because it throws off the budget. At the same time, if the money is available and you are meeting all of your obligations why not indulge in a new outfit or eat out for dinner? If we can take a more balanced perspective on money we can have a much healthier relationship with it.
Focus on Experiences
Another outlook about money is using it as a means to have meaningful and enjoyable experiences. Instead of focusing on acquiring materialistic possessions, such as a new TV, why not:
- Take a trip to somewhere you haven’t been before
- Sign up for a class to expand your horizons or for fun
- Invest in training that helps your career
- Focus on your health by participating in a gym or exercise program
- Visit a museum, art gallery, or another cultural site
When you look back on your life, will you have more satisfaction from all of the possessions you have acquired or the experiences that you enjoyed?
If you are struggling with your beliefs about, and your relationship with, money, consider evaluating your perspective. A counselor trained in financial therapy can help you. When you adjust your financial thinking, you’ll be amazed at how much “richer” you’ll be!
Denise Kautzer is a Licensed Professional Clinical Counselor and a Certified Public Accountant whose practice is located in St. Paul, MN. You can view her website at www.denisekautzer.com or contact her at denise@denisekautzer.com.