Don't earn to spend, and don't forget about generosity!

I was reading this article about the "Five Habits of Millionaires" and points 1 and 5 really stood out to me. Point 1 because it's something I need to do, and Point 5 because it's something I already do and will always do.

1. Avoid the Earn-to-Spend Mentality

I don't think it's ever occurred to me NOT to earn to spend. When you're a teenager you get your first job because you want extra money. I can't speak for all 17 year old but when I started working in the fast food industry I wasn't saving that money. I already had a car, and paying for my uni degrees upfront didn't even occur to me. I earned that money to spend it. And not wisely!

I look back now, and really regret not listening to my mother's wise words: "Save SOME money". She didn't mean all of it. She always said to me "even if you only put away $10 a week you'll end up ahead" but I foolishly thought $10 a week was lame. If I had saved $10 a week every week since I started working in October 1997 I would have very close to $6000 today. Not a HUGE amount of money but when you consider we owe $25,000 in credit cards, that $6000 would be nice!


And if I had started saving then, maybe I would've developed healthier money attitudes and I would have learnt to appreciate the value of money sooner and not have "wasted" it or accrued credit card debt! I need to learn that I earn money to provide necessities for our lives, not to "spend". It's the same as attitudes towards food. If you can learn the difference between "every day" food and "sometimes" food, then you can have a healthy attitude towards food.
If i can learn the difference between necessary spending (i.e for food, shelter etc) and luxury spending (new handbags, shoes etc) then I will have a healthy attitude towards money. Just cos I earn that money doesn't mean i get to "spend it".

Once I've mastered this, then one day, yes, I will be able to have those luxuries more often. And achieve life long dreams like travelling through South America. Right now I would HAPPILY swap all those dinners I put on my credit card for 2 months of back packing through Europe.


5. Be Generous

Looking after others is something I can never stop doing. Just yesterday Mum called and said she was having some money troubles and I offered her some money to pay a couple of bills and to send to her mother overseas. Of course, she proudly declined the money for her own bills but was thrilled that I would send some money to my grandmother.

It's for this same reason I sponsored two of my friends this week, one is doing a 100km walk to raise money for Oxfam, and the other, a lovely girl I know is shaving her head for Save For A Cure (Leukemia Foundation) and I sponsored each of them $25.

We also give to charity every month, even though cancelling it and saving that $24 a month seemed appealing when we realised how much debt we were in - but I just can't justify it. We still have a lot of luxuries that I could cut back -- until there is no more blood to squeeze from the stone, there is always some to give, right?

So... where does that leave me now? I've just got to learn to think that the money I earn isn't just to spend... I need to make it a priority to repay debt (blah dead money) and start saving!! And always, ALWAYS, have room in my budget for giving. Either way i just need to stop spending!!!

Although... today I am breaking my No Spend Day to buy myself some new shoes for work! The ones I've been wearing have stretched so much it's dangerous to walk in them - that'll teach me not to buy cheap shoes! These $20 ones from K-mart have only lasted me about 6 months. Oh and I HATE to say it but I really need some new work clothes. A colleague actually mentioned to me how faded my black cardigan is. With the cold weather approaching I could really use a nice new thick one. And I noticed today that all my pants are getting lint balls on them, so I also want to buy a good quality lint remover! If I can revamp my existing clothes I won't have to buy so many new items. I'm giving myself $100 limit, as I've assessed our budget for the coming month and we can afford that, especially with all the overtime Mr Melbourne (i.e BF) has been doing lately.

I feel guilty shopping! The bright side is it's my sister-in-law-to-be's birthday so I get to buy her a nice present as well - don't worry, it's been in my budget since January!