We live in a world of temptations where there is something to buy around every corner. In addition, we have become conditioned to wanting immediate gratification. So if there is something we see that we want, we simply buy it. If we do not have the actual money for the item we simply charge it on a credit card. We have become and are known as a consumer-based society. Well, all of this is fine except for when you need money to buy something of substance like a home and you find that you are broke.
Many of us today do things and spend money in ways that we think are a basic way of life, but just a few decades ago these same things would have been considered luxuries. There are so many examples; like going to a Starbucks daily and buying that special coffee; going out to eat several times a week; playing lotto or even going to one of your favorite casinos. Maybe you like the weekend getaways to Palm Springs, L.A. or some other travel destination. Getting a massage is certainly at the top of my list for treating myself. The discretionary ways in which we spend money are endless, not to mention the things we have to spend money on like rent/mortgage, gas, groceries, insurance, utilities and medical etc. So it is up to us to be mindful and exercise care with our spending and live beneath our means.
I had a friend visit me recently from London and as a nice gift, he surprised my partner and I by treating us to an overnight stay at one of the upscale and beautiful hotels downtown. He reserved two suites for us, which were very elegant and high end. I must say it was fun to indulge in that type of decadence. But when I found out what the rooms cost, I was not happy. My friend spent more than $600 for the one night stay. And although the thought was nice, I did not want him to spend that kind of money on me. I would have been happier with him treating us to a meal at Urban Mo’s, Baja Betty’s, Babbo Grande or one of the many fun restaurants around town, which would have been a fraction of the cost. What was the worst part of this is that my friend is a regular working-class guy. He does not have the kind of money to spend $600 plus on a one-night hotel stay, particularly when we had made arrangements for him to stay with us.
Although this example might be a little extreme, there are countless examples of how we all spend money without thinking much about it.
It is wonderful to treat yourself to special things in life, but make sure when you are spending your money you are not over-extending yourself financially. It is so easy to spend money, and you can find yourself spending your money faster than you can make it.
If you have not already done so, take the time to assess how you spend your money each day. You will probably be amazed at some of the items you buy and how quickly your money can go. You may want to make a budget for yourself and long and short term financial goals. Of course, one of the most important things that we should all use our money for is a home. If you already have a home, then consider helping a friend or family member who is currently renting, plan for a home purchase. Now is such an incredible time to buy a home. Housing prices are significantly down from five years ago and mortgage rates are historically low. So save your money and buy a house.
Trent St. Louis is a licensed Real Estate Agent and a member of the National, California and San Diego Association of Realtors. You can reach Trent at SpecialAgentTrent@gmail.com or at his office in Hillcrest, 619-300-1621. The Metropolitan Group (CADRE#01273643).
