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"Deserve" is Destroying Your Wealth

We all have friends and family who "deserve" a summer vacation, a night out with friends, a new car, an expensive pair of shoes, etc. In this case, the word "deserve" can be translated to mean "can't afford, but doing it anyway." If this sounds familiar, you're not alone!

These purchases are typically made on a credit card, which are currently charging ~24% interest. Let's stop here for a second and use a real life example. This means that a $3,838 vacation, the average cost for a couple, that takes a year to pay off, will actually cost you $4,355. In simpler terms, it costs $517 more! This is how credit card debt drags you down.
Soccer players dragging each other down like credit card debt

Buying more than we can afford is a tale as old as time, but in the current interest rate environment, it's becoming catastrophic to your wealth.

Father giving his child a book titled "The Art of Buying More Than You Can Afford"

This "stuff" that you "deserved" doesn't just impact your wealth, but also your mental well-being.

The Solution

The solution is simple, but that doesn't mean it's easy. You need to do the following:

  1. Relearn Needs vs. Wants: My kids learned about needs vs. wants in elementary school and it's a lesson that most adults could use.

  2. Change Your Vocabulary: Erase "deserve" from your vocabulary. This will start to change your mindset about spending. You "want" a night out or a vacation, but you don't "deserve" one.

  3. Adjust Your Perspective: Try to zoom out from whatever you are currently desiring and think about everything you already have. As Theodore Roosevelt said "Comparison is the their of joy," but if you used correctly, it can also be a provider of gratitude. For example, there are ~40M people living in poverty in America, which is a staggering and sobering statistic.

  4. Start to Spend Intentionally: Start to spend intentionally, which simply means prioritizing what's important to you, regardless of how it may seem to others, and then ruthlessly cut the other "stuff."

Homer Simpson buying more stuff

If you want to learn more about how to develop a wealth mindset, please schedule a free introductory meeting! For just $5/day, it’s the most affordable way to access professional help.

Disclaimer: The information in this post is provided for your convenience only and is not intended to be treated as financial, investment, tax, or other advice. The information is intended to be educational and is not tailored to the investment needs of any specific individual.  It is also not intended to be relied upon as a forecast and is not an offer or solicitation to buy or sell any securities or to adopt any investment strategy.  The opinions expressed are those of the author.  Reliance upon the guidance and information in this presentation is at the sole discretion of the individual.


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