If you haven't saved money in the past, saving money in the future requires a new mindset. Whether you are saving for a trip, saving for a house, saving for kids, or saving for a rainy day, it’s the same mindset—you are delaying instant gratification for a long-term financial objective. There are two economic forces competing against you that target instant gratification:
Nobody wants to overpay. Nobody wants to purchase an item or service then learn later they could have saved 10% had they transacted with someone else. Thus, anyone giving you money, doesn’t want to give you more than what’s necessary.
As soon as you receive money, someone is trying to take it from you. Taking money is sneaky because everybody is trying to separate you from your money. Companies try to convince you to purchase a new car, a certain type of food, a certain type of beverage, and certain types of clothes. Even people advising you to put your money in areas where it may appreciate and generate future income, like a retirement fund, real estate, or savings, are telling you this because it’s profitable to them—they earn a commission. No one is telling you where to put your money out of kindness. Everyone wants a cut.
To withstand these economic forces, you need to assign value to objects. Your personal value. Not what commercials or society say is the value of the object. Your value assessment is the one that matters. To assess financial values, set your priorities. Set your objectives. If a purchase doesn’t align with your priorities or move you closer to your end goal, don’t make the purchase. Conquering the economic forces is that simple.
Creating a travel budget makes it easier to assign a corresponding financial value to purchases. With a travel budget you may calculate that $15 equals a day’s worth of food. $20 is a night’s accommodation. Using the travel financial value mindset, a Starbucks latte every workday doesn’t cost $20 a week, it costs a night’s accommodations. The free coffee at work works as well as Starbucks; the economic force is that Starbucks wants your money so badly they have convinced you otherwise. Evaluate each purchase through this personal value prism before handing over your money.
Taking this mindset before departure will help with your purchase decisions on the road and long term when you return. Don’t make a purchase unless it moves you closer to your priorities and objectives.
- Anyone giving you money is going to give you as little money as they possibly can.
- Anyone taking your money is going to take as much as they possibly can.
Nobody wants to overpay. Nobody wants to purchase an item or service then learn later they could have saved 10% had they transacted with someone else. Thus, anyone giving you money, doesn’t want to give you more than what’s necessary.
As soon as you receive money, someone is trying to take it from you. Taking money is sneaky because everybody is trying to separate you from your money. Companies try to convince you to purchase a new car, a certain type of food, a certain type of beverage, and certain types of clothes. Even people advising you to put your money in areas where it may appreciate and generate future income, like a retirement fund, real estate, or savings, are telling you this because it’s profitable to them—they earn a commission. No one is telling you where to put your money out of kindness. Everyone wants a cut.
To withstand these economic forces, you need to assign value to objects. Your personal value. Not what commercials or society say is the value of the object. Your value assessment is the one that matters. To assess financial values, set your priorities. Set your objectives. If a purchase doesn’t align with your priorities or move you closer to your end goal, don’t make the purchase. Conquering the economic forces is that simple.
Creating a travel budget makes it easier to assign a corresponding financial value to purchases. With a travel budget you may calculate that $15 equals a day’s worth of food. $20 is a night’s accommodation. Using the travel financial value mindset, a Starbucks latte every workday doesn’t cost $20 a week, it costs a night’s accommodations. The free coffee at work works as well as Starbucks; the economic force is that Starbucks wants your money so badly they have convinced you otherwise. Evaluate each purchase through this personal value prism before handing over your money.
Taking this mindset before departure will help with your purchase decisions on the road and long term when you return. Don’t make a purchase unless it moves you closer to your priorities and objectives.