The Addison Cafe

Remember long family car rides? Kids always ask how much farther it is, and parents always reply, “Just over the next hill”.  Sometimes it seems like people have the same reaction with their finances. When asked how much money is enough, most people say 10% more than they have (regardless of their class).

Will you ONLY be happy when you earn X, weigh Y, or have Z? Does happiness really come just over the next hill?

More often than not, things are most expensive when they first come out. You pay the extra money for the novelty of being first, cutting edge, maintaining a certain image, etc. But how much would you save if you waited until the price dropped? Whether a newer model is released than the one you want, or a sale is coming down the road, you will almost always spend less when you wait.

There was a psychology experiment done years ago on children that tested their ability to delay gratification. Children were given a marshmallow and told they could eat the marshmallow right away, or if they waited five minutes, they would be given a second marshmallow. Eat one now, or eat two later?  Can you guess what the children did? What would you do? 

It’s easier to go out for lunch instead of packing one. It’s easier to just swipe your card rather than budget. It’s easier to use credit than to show restraint. And it’s also easier to feel anxiety after you do those things rather than peace.

Are you trying to acquire “stuff” or “freedom”? Would you rather sit back and marvel at everything you have, but have little savings, or choose to have less and instead be free to do whatever you want with your time and energy?

The hard road is usually the good road.