Small Leaks
“Our power is in our ability to decide.” - Buckminster Fuller
We were eating Chinese food with friends the other night and after reading our fortunes, someone said, “Pass them to Nina and she’ll write a blog about them.” Well, there were seven of us at the table and only one person had winning advice on their strip of paper: “Beware of little expenses. Small leaks will sink great ships.” Does that even count as a fortune? This sounds more like a personal finance principle. And as such is good advice.
As discussed before, I am better at discovering ways to make more money rather than curbing my expenses like so many of the “saving money” bloggers. Although my one redemptive quality is that I am not much of a consumer. I admit that I appreciate comfort and will spend money on experiences (i.e. boutique hotels, spa treatments, Zagat-rated restaurants, good wine, imported olive oil, fancy cheese).
That said, I am not an impulse buyer of “necessities” at Target, my rare visits to Starbucks consist of a Grande coffee of the day and not anything made at the espresso bar and when I venture to the mall (once or twice a year) it is basically to restock my work wardrobe. By the way, I’m well heeled only because I buy classics (e.g. Gucci loafers that set me back $399 but these are my only pair of work shoes... yes, my only pair. They are three years old. I have resoled them twice and if I continue to do this then they could last another ten).
But you still can’t argue with the experts about spending less money on things. “It’s Your Money” summarizes the 7 Factors of Wealth as outlined by the authors of The Millionaire Next Door. Leading the list is “They Live Well Below Their Means: Contrary to popular belief, frugality is the foundation of wealth. Mundane consumption habits that are void of luxury-car purchases and fabulous yachting sprees may not impress the neighbors or the media, but then, impressing the public isn't the goal of most first-generation millionaires. Financial independence is.”
Jeanne Sahadi from CNN/Money writes that there are five ways to tell you’ve reached money maturity. Of course, on the list we find: Less really is more.
“You have material desires like everyone else. But you recognize that those desires are fueled by an advertising-driven culture that encourages you to feel like you never have enough. You understand that the quest to possess can be never ending unless you consciously apply the brakes.
The true signs of a financial grown-up: Instead of ratcheting up your lifestyle every time you get a raise, you consciously live below your means, value the nonmaterial wealth in your life, such as family and friends, and resist the urge to buy the next big thing simply because you can.
In the end, says James Gottfurcht, president of Psychology of Money Consultants in Los Angeles, you know that you've reached money maturity when you realize that "financial freedom and success go not to those who have the most, but to those who need the least."
We were eating Chinese food with friends the other night and after reading our fortunes, someone said, “Pass them to Nina and she’ll write a blog about them.” Well, there were seven of us at the table and only one person had winning advice on their strip of paper: “Beware of little expenses. Small leaks will sink great ships.” Does that even count as a fortune? This sounds more like a personal finance principle. And as such is good advice.
As discussed before, I am better at discovering ways to make more money rather than curbing my expenses like so many of the “saving money” bloggers. Although my one redemptive quality is that I am not much of a consumer. I admit that I appreciate comfort and will spend money on experiences (i.e. boutique hotels, spa treatments, Zagat-rated restaurants, good wine, imported olive oil, fancy cheese).
That said, I am not an impulse buyer of “necessities” at Target, my rare visits to Starbucks consist of a Grande coffee of the day and not anything made at the espresso bar and when I venture to the mall (once or twice a year) it is basically to restock my work wardrobe. By the way, I’m well heeled only because I buy classics (e.g. Gucci loafers that set me back $399 but these are my only pair of work shoes... yes, my only pair. They are three years old. I have resoled them twice and if I continue to do this then they could last another ten).
But you still can’t argue with the experts about spending less money on things. “It’s Your Money” summarizes the 7 Factors of Wealth as outlined by the authors of The Millionaire Next Door. Leading the list is “They Live Well Below Their Means: Contrary to popular belief, frugality is the foundation of wealth. Mundane consumption habits that are void of luxury-car purchases and fabulous yachting sprees may not impress the neighbors or the media, but then, impressing the public isn't the goal of most first-generation millionaires. Financial independence is.”
Jeanne Sahadi from CNN/Money writes that there are five ways to tell you’ve reached money maturity. Of course, on the list we find: Less really is more.
“You have material desires like everyone else. But you recognize that those desires are fueled by an advertising-driven culture that encourages you to feel like you never have enough. You understand that the quest to possess can be never ending unless you consciously apply the brakes.
The true signs of a financial grown-up: Instead of ratcheting up your lifestyle every time you get a raise, you consciously live below your means, value the nonmaterial wealth in your life, such as family and friends, and resist the urge to buy the next big thing simply because you can.
In the end, says James Gottfurcht, president of Psychology of Money Consultants in Los Angeles, you know that you've reached money maturity when you realize that "financial freedom and success go not to those who have the most, but to those who need the least."
posted by Nina Smith at 6:02 AM
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