STOP BUYING THINGS YOU DON’T NEED, TO IMPRESS PEOPLE YOU DON’T LIKE
As you probably know by now, my attitude to money has been pretty much the same ever since I can remember. I was born saving and I’m allergic to debt.
But I know I’m unusual. According to The Money Charity, the average unsecured debt (i.e., not a mortgage) per adult in the UK is now almost £10,000. The average British student leaves university with around £40,000 of debt to pay back. The average credit card debt is around £2,000, and among young people it’s much higher. There is just so much temptation out there, you can get almost anything on finance. It’s no wonder so many people end up in debt.
When everyone around you is borrowing money and buying things they can’t afford, it’s hard to be different. It’s hard to pass up nice things when out for dinner with friends or on holiday. It’s hard to say out loud that you can’t afford a new coat or to buy a friend a birthday present. I see it all the time, people pretending they are richer than they are. I get daily messages from people – men and women – who say they can’t tell their partners about their spending or they feel out of their depth with borrowing. And I come across people in denial, lying to themselves, who say they can’t afford the food shop but then spend a fortune on cosmetic surgery or a new watch. We live in a culture that presents debt to us as though it’s normal. So, I know I can sit here and give you all the money-saving tips in the world, but if you’re surrounded by people borrowing more and more to buy a lifestyle they can’t afford, it’s going to be difficult. I get it. This is where your money mindset comes in!
WANT OR NEED?
As well as working out your money mindset, there are plenty of other ways to adapt your behaviour around money and start making changes at a mental and emotional level. One of the simplest and most useful tools in my money mindset bag is my little Want or Need Test.
It’s a bit like the decluttering exercise where you ask yourself if you really, truly love something or if you are holding on to it for vague reasons or out of fear. This simple, four-question quiz will help you in those moments when you’re not sure whether to buy something or not.
CRUCIAL QUESTIONS
Next time you are about to spend money on something that you’re not sure you should be spending it on, ask yourself these four questions:
- Is this necessary for my family’s (including my own) health or safety?
- Is it vital for something else?
- Can I wait a while before I have to buy it?
- Have I got any acceptable alternatives?
THIS IS AN EXCLUSIVE EXTRACT FROM GEMMA BIRD’S BOOK, MONEY MUM
