Back in the days when Grandpa\ used to slyly slip us kids a penny or a quarter, he’d always accompany it with this statement: “If you never spend it, you’ll never be broke!” He grew up during the Depression and had to work as a hired hand as a young boy after his family lost their farm, so you could safely assume that Grandpa knew what it was like to be broke and took the statement pretty seriously. As a young girl with a less complete understanding of the value of money, I used to stare at the coin and ponder his statement anew each time. Though I knew I couldn’t buy much for a penny (and today, considering inflation, he’d probably have to slip us a $5 bill to have the same effect), I realized that Grandpa was right—indeed, if I never gave the penny away, I’d always have it. Therefore, I’d always have a little money. The concept is simple but powerful.
Grandpa was also fond of repeating the saying about people whose money would “just burn a hole in their pocket ‘til they could spend it.” I’ve watched cash do similar things to my wallet. Let’s say I pull a twenty out of the ATM and slip it into its spot behind the receipts and credit cards. Then I’m walking down the street past the coffee shop I usually avoid because I don’t want to have to write a check for a latte, and I think, “hey, I have some cash; I want that mocha!” Boom—there goes $4. Who knows what will happen next? Maybe I spring for a discount book at Barnes & Noble while I’m browsing because, again, I have the cash. Maybe today is the day I decide I need a new keychain, or a toy for my dog (who, despite my best efforts, would always prefer chewing the same stuffed animal anyway). The list could go on and on.
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I LOVED this post! It really hit home and touched upon so many good points. I browsed online all afternoon, and after reading this, I didn't buy a single thing.
All week long I've been resisting upgrading my Kitchenaid Artisan mixer to a Kitchenaid Professional. There's a great deal on Amazon and everything! But my credit card balances are yelling No no no!
Thanks for the story about your grandpa.
Grandma was so right. I probably have the worst case of buyers remorse on the planet. Sometimes I will leave a store by the time I get to my car I wish I had not purchased anything.My grandfather and father both instilled these principles in me. When I bought my first car I was so sick I did not want to drive it. I have always been afraid to get back down to that last penny. How do you cope with spending money?
I'm meticulous about keeping track of purchases made with my checkcard but give me cash and I can spend it before I blink somehow. Part of it is that I don't track cash (too many pennies here pennies there.)
It does drive me a little nutz when people who educate people about getting out of debt are adamant that you get cash and put it in envelopes for each budget item. Or to get cash because you can't spend more than you have. Or to get cash because of debit card fees (again, know your bank or use your debit card like a credit card so you aren't charged fees... and aren't putting your pin in other companies systems.) Or to get cash for spending because you won't overdraft your checking account (the lamest excuse I've heard so far actually ... maybe people should balance their checkbook and know how much they have so they don't get charged overdraft fees.)
Can you tell it's a pet peeve?
Granted for some people budgeted cash in an envelope system does work better but not for everyone.
So what can I resist buying today? How about replace the french fries and soda with the apple walnut side at McDonald's. Actually I did do that yesterday when I was crunched for time to make dinner. Resisting those greasy salty fries is hard! Apples, cheeseburger and a water and by the end of it I wasn't craving the fries (and there was a small amount of money saved there too.) :)
I love your "What can I resist buying?" challenge. Advertisers make it very hard, don't they? Even if you don't watch TV and get your news programs via podcasts, you're still bombarded by billboards when you walk down the street. It's good to have a little mantra to remember to cut through the mindless consumption we've all become accustomed to.
I wrote a bit about mindless consumption today. Not specifically regarding buying things but more in general.
Beth
Have you ever thought about using Geezeo, a FREE web-based personal finance manager to help you track your money and stay on budget? It's helping me out a lot this holiday season already, and I feel less stressed about my finaces!!