Can you be too afraid to spend money?

by Mike on June 29, 2013

afraid to spend money

I have caught myself making  a few decisions recently around spending and being too afraid to spend money at a time when it could clearly benefit me. Not only was I hesitating to pull the trigger on something which could be to my benefit I was not even rationalizing consciously why I was doing it. My subconscious was in charge of the whole process. Which got me to thinking about the frugal versus Abundant post I made back in March and how sometimes I wonder if we can be too frugal to the point that all we achieve is a reduction in everything in our lives.

How do you know when your afraid to spend money?

To me and what I consider my evolved thinking there should be some fairly simple indicators that I am being too frugal and I am too afraid to spend money. To work out too frugalwhat these were only took me the time it takes to take out a pen and paper and make a two column of what I would consider my indicators. I have shared these below;

(Note remember why pen and paper is better than electronic? When your physically write something I feel you are changing the message you are sending to your subconscious about what you want. Remember I mentioned this in setting goals for the New Year !)

  •  Do you carry less cash in your purse/wallet so you wont be tempted to spend it (self control issue here).
  • You put money away for an investment you never make. A holiday you never take? Which disappears in the long run anyway and you have no idea where the money went!
  • You hesitate to spend $10 on a six pack to take to a friends place but will spend $20 on two drinks when at a bar
  • You don’t see the upside in spending a little more to upgrade from a basic/cheap item to the better brand or product with a longer life (saving money in the long run)
  • You wait PAST SALE TIME and buy when things are the normal price.
  • You don’t plan ahead to buy what you need before you need it and have to spend more on a last minute purchase.
  • With credit card bills you don’t pay the maximum you can afford to reduce the interest your paying (just in case you need cash)
  • Wont repair something around the house even though you know its costing you more money. That water heater, fridge or aircon etc!
  • Wont spend the money servicing your car which will create problems in the long run with repairs. Tyres are what I neglect here as I rarely balance or align my car)

 

Do you know what happens when your too frugal compared to abundant?

too frugal A couple of months ago I noticed a report by NYTimes about consumer spending being on the rise. Watching financial indicators isn’t a hobby of mine but to me this is a clear indicator that some of those subconscious thoughts that drive the spending of population in the US has changed slightly. What does this signify? Their not as afraid to spend money as they were in the past. Do these people even realize their thought processes have changed or like me are they simply on autopilot regarding some of their financial decisions.

Are they making a conscious decision about their being frugal or do they even understand what being too frugal is.

The thing that gets me fired up about spending and the economy is how its all linked. When the media tells everyone that we are in tough times people stop spending, businesses stop making sales, producers stop being paid for products and before you know it we have tough times!

Conversely when the media above starts telling everyone that things are looking better spending increases, businesses make money and employ more people or buy more goods. The economy does better and good times being. All as a result of consumers as a group being too frugal without thought as to why.

Afraid to spend money? Too Frugal? Which one are you?

Don’t get me wrong I agree with a frugal mentality. I spent countless hours with my lady helping her rebuild her business and its strategies from the ground up in order to prevent it becoming a liability rather than an asset and to make sure we reduced costs and overheads where we could. I plan out my strategic spend over a twelve month period both for my small business and for my personal costs. Here is where I hope I use it to my advantage though.

I then make smart decisions about not being Scared to Spend Money and I spend on things that are smart. I shop at the right time to make savings and not the wrong time when things cost more. I am not scared to spend when it can save in the long run by buying bulk. I make sure I take advantage of things like coupons and shopper promotions which can also save in the long wrong. And last but not least I make sure I look at spending which can make money AS WELL as save money.

 

 

Don’t forget to share my writing today if you know someone who is too frugal or want to share your abundant thoughts!

 

 

 

***Photos thanks to 401K,Sunshinecity & DohBoy***

 

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