Mastering your money and knowing if you're an emotional spender is fundamental to better operating your household. This is similar to knowing your financial health status. I believe that when you truly study Finance and Economics, it is easy to see that money trends change in waves. Therefore, why can't it for regular people? The top 5 ways to see if you're an emotional spender will assist you in enhancing your business, life, and future. Recognizing your weaknesses will improve your strategy overall.
- Do you always spend when you are feeling really good or bad?
- Do you spend more when you feel it looks cheap to not buy something more expensive than you can afford?
- Do you typically check your checking account 2 times per month?
- Do you view money as a foe that causes pain at the beginning or end of the month?
- Have you not prepared for a financial disaster since 9/11/2001 or Hurricane Katrina?
I think if the answer is yes to all these questions, it is a good indicator that you may be in denial. If you answered yes to only a two, you may be considered normal. If you answered yes to more than three, you probably need to revaluate your financial situation. Therefore, it may be a good idea to start making a safety net for yourself and your family now. Otherwise, when a natural or other horrible event occurs, it will not cripple your life.
The future belongs to those who plan well, and follow the path they set. However, this does mean that things cannot change, but it means that a strategy for money is important to stability in business. Every person should take a lesson plan from the MBA's and create some type of life plan. Start by creating a balance sheet. This will help with looking at your finances and putting everything in perspective to avoid emotional spending.
