Money Matters: Real Life vs. Faux Life

If you ever take a few minutes to really look at where your money is going you might realize that it is going toward a life you don’t lead. Too many people spend money on the life they think they have, rather than the one they do have. What this means is people spend money on things they don’t need because they think they have to. That Badgley Mischka evening gown that was on sale at Saks for 80 percent off, did you really need it? As in, were you invited to any black tie affairs that required a designer gown anytime in the past year? Probably not, but was buying that gorgeous dress for $200 instead of $1000 really worth it? Again, probably not; which is why it is time to start spending your money on your real life, not your Real Housewife fantasy.  Remember, money matters in the real world.

Once in a While Spending

When you planned that monumental vacation to Hawaii you went out and bought seven new bikinis, beach cover-ups and floppy hats. Don’t forget to mention the sandals and sunglasses you purchased to go with each one. What’s the big deal, you ask? You live in Alaska. Unless you live in Florida or some other hot, sunny location where you will wear those things on a regular basis, don’t buy them. Buy one or two and switch them up to make them last. The beach and pool are clearly not your life, so don’t waste money you could be saving to fund it for a mere week.

House Poor

As a single gal with a modest income, did you really need that 4,500 square foot house with four bedrooms and four bathrooms, even though it stretched your budget a little too thin? Once again, no, you did not. Unless you bought that house for a price so ridiculously low that it would make the rest of the world cry, there’s no need to stretch your budget to have a home that’s too much for you. Have you ever heard the term house poor? That’s exactly what you are. Buying a house for your someday family when you aren’t even married or seriously seeing anyone so that you have plenty of room for your four kids (Might I also mention that after you have just one you may not want to add three more to your life? Just saying.) and your entire extended family to have Thanksgiving dinner is one of the worst money mistakes you can make. If you don’t need it, don’t buy it. Even if you can afford it, if you will only use the majority of that space twice a year for Thanksgiving and Christmas dinners, you are paying for something you don’t use, which is a gross waste of money. Think of it in these terms: You wouldn’t purchase a car solely for the purpose of putting it in your garage so you can drive it once a year to your annual OBGYN check up, would you?

When you invest in your everyday life rather than your make believe life, you will be happier, richer and more satisfied. Too many people forget to do this and spend their time wondering why they have no savings and cannot afford to go on a great vacation or buy a new handbag. The reason they have no money to do the things they really want is because they are too busy spending it on a life they don’t actually have.