Ben Stein is an established economist. How do you think he had all that money for people to win? I enjoy reading his weekly articles on Yahoo! Finance.
Here is an article from a couple of weeks ago on the benefits of financial simplicity. I thought it went well with some of my previous posts. Ben (yes, we're on a first name basis) provides two contrasting examples of how the choices we make now can either add unnecessary financial risk to our lives or create additional barriers against risk.
The article also reminded me that I wanted to clear up another misunderstanding about budgeting and saving. It is not wrong to buy that nice car if you want it. It is not wrong to go shopping. The issue is the timing of your purchases. If we had no money in the bank, my wife wouldn't spend $100 of her paycheck on some new shoes. She knows that there is no barrier between us and the unexpected. Unless she were able to kick our way out of an unforeseen problem, the shoes would be of no value to us.
On the other hand, if we had been diligent and had $200,000 in the bank, we wouldn't bat an eye if she bought ten pairs of shoes. Because she wasn't using money we may need for groceries if our car breaks down.
So our circumstances dictate what would be irresponsible. The item itself is irrelevant.
By starting to budget and grow savings, you are not embarking on some gloomy journey of denial for the rest of your life. I encourage you to become financially ready before you begin fulfilling your wants. You will then be able to purchase without guilt and enjoy your things more.
Though, if you're like us, the process of taking control of your finances will take you a long way towards taking control of your life. And you may realize that the things you truly want do not cost money.
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