Ever ask yourself, why don’t I have enough money even though I have a good wage or just got a promotion? Where’s my money going? You make enough but you need more, why? You’re not alone. Parkinson’s Law says “work expands so as to fill the time available for its completion.” What on earth does that mean?
Where did the time go? Have you ever said that when you took a day off or had a plan to do certain chores but couldn’t finish it all? That’s what this is saying. There’s more work than time in a day.
Now, translate this into financial lingo. As the need to spend on more things there isn’t enough money available. Have you asked yourself, where does all my money go? What changed with my spending because I was ok before, you might also be saying? If you got promoted, received a bonus, or any other financial increase, do you see yourself spending a little more? Upgrading the car, move into a bigger house, eating at nicer restaurants, buying nicer clothes, taking more lavish vacations, and other things you didn’t do before?
When I reflect on my life, I did exactly this. It wasn’t intentional that I wanted to spend more than what I have. Life happens and at each stage in my life, I thought to myself I needed an upgrade. After college, I was living with roommates in an apartment. We all had good paying jobs and then we decided to rent an entire house. Once we moved into the house, we needed more furniture, bigger TVs, and other furnishings. We were young and had good jobs so what did we do next? We went on nice vacations together, bought nicer things, ate out at nicer restaurants.
After a few years, we eventually all moved out and went our separate ways. I moved back home and saved enough money to buy a condo. I had to furnish and live on my own. I bought a certified used BMW. I had to get home and auto insurance. I eventually got engaged and married. My wife and I thought the condo was too small if we wanted to start a new family. I sold the condo and purchased a townhouse. Then traded the mini-cooper for a SUV. We started a family and decided to sell the townhouse and buy a single family house.
I think you get the picture I’m trying to paint here. As your needs grow, there’s more to spend than what you have. So, how do you balance this out?
Live Within Your Means
We get into financial problems because we start to live outside our means. Also known as spending more than what you have. Keep track of your financials. Try to avoid impulse buying. Make sure what goes out is less than what comes into your bank account.
Is It A Need Or Want?
Do we really need it or is it something we want? Many times we try to justify that we need something when we really don’t. Do we need that new car? Do we need to travel on business class? Do we need to stay at the Ritz? Do we need a bigger TV? There will be times when the justification is valid but keep asking yourself, how much further will this push me back from reaching your financial goals.
I am a prime example falling under this Parkinson’s Law. I saw myself spending more and more, then asking myself where all my money went. We justify our spending but what we don’t realize is how it impacts us financially. Your spending habits change and you could see an increase in debt or not being able to save any money. Take control of your spending and live within your means. Stop feeling like you make enough but you need more. If you are interested in following my journey, email subscribe to get alerts of latest posts or follow me on Facebook, Instagram, and Pinterest.
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