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Small Business CardsIf you’re thinking about money, and trying to sort out how you deal with your money, then you’re obviously smart in many ways. Of course, smart people do stupid things sometimes. Let’s go over a list of stupid things that smart people do. Once they’re out in the open, it might be easier to see which traits apply to you and how you can avoid making the same mistakes…
1. Trying to impress others
We all like to think that we live modestly and that if we had more money, we would save it or do great things with it. But what about the money we already have and what we do with that? All of us try to impress others with the way that we live, dress, drive and clothe ourselves. Can you be 100% certain that you bought the V8 SS Commodore because you really needed that much car? Or would a baseline Commodore have suited your family just fine… only you thought that the sportier model would have made you look cooler?
You might rationalise it that you enjoy the V8 car more, but in all honesty, how often do you get the chance to utilise and appreciate its full power? Probably not very often between commutes, school runs and weekend trips to the beach shack…! A part of you wanted the sporty car to impress other people. As soon as you can see the reality of this, purchases immediately take on a different feel. You no longer need to impress anyone because you can see how silly it is. You can buy only what you truly need. Smart people are actually more susceptible to this trap because they are better able to rationalise why they actually “need” something, even when it’s only a “want”.
2. Buying stuff because they’re tired
Smart people like to keep their minds engaged with interesting and new things. That’s natural. The problem is that with today’s modern lifestyle, work takes up such a large chunk of our energy and time, that we often finish work we feel deflated and flat. We’d like to boost ourselves with a sense of achievement, but often don’t have much energy left for creative ventures in our free time. In the back of your head, you’d like to finish that kitchen shelf, that dress for your daughter, that interesting book on finance (you read books on finance, don’t you!?), or the wallpaper border in the new nursery.
But, when we’re tired, it’s hard to find the motivation to work on a project which will take a while to finish – we want the sense of achievement and the high that comes with that *now* – and what ends up springing to mind? That’s right – retail therapy! Buying stuff because we are tired is a very effective way to boost the economy – but it doesn’t do much for your savings. Think ahead and plan in some feel-good activities for your free time that don’t involve much energy – or money. Half an hour with a yoga DVD in the spare room, a cup of tea and an easy-read novel, or a lie down with your favourite chillout music and cucumber slices over your eyes? Whatever your style… plan ahead to avert retail therapy before it happens.
3. Taking short, expensive getaways that stress them out
Tourism knows we work hard at our jobs and crave relaxation in our spare time. But is an expensive getaway really the answer to your stress? These holidays don’t offer any real value, since one or two days isn’t nearly enough time to unwind. You won’t get any rest while being shuffled from one activity to the next.
Factor in travel arrangements, and it cuts into your leisure… factor in the amount of money you will end up spending, including new clothes for the occasion, eating out, visits to nightclubs, shows or historical sites, and buying souvenirs, and you’ve spent a lot of money without even realising it. But as soon as you do realise it, usually after you get back home, you’ll feel even more stressed than before!
Expensive short getaways are bought most often by busy smart people. Don’t fall for it. You’re smart. Save up some leave, take a couple of weeks off and find a quiet low-key furnished place to rent for a modest fee and take groceries along with you. You can still go out to dinner some nights and go and check out a few fun things in the area, on your terms, at your pace, and without the pressure – or price tag. Remember: expensive getaways won’t relax you – peace, quiet, good food and comfortable times with loved ones are much more relaxing.
