You're secretly hurting your financial health

I'm sure you've done it; I have done it myself. We use our voice of reason to justify spending. "This jacket has seen better days" or "Guests need to see that I have the newest stuff." I just know you have a good excuse you've come up with.

As it turns outs a behavioral expert, Daniel Crosby, Ph.D. call this the "junk food of personal decision making." Easy in a pinch, but detrimental for long-term health. Of course the first step is admitting there is a problem.

Here are four common ways we justify our spending:

1. It's for a good cause.

After we meet our financial goals and priorities, we may find that spending money on others makes us feel happy. Well there is most certainly a time and place for this, don't cause yourself stress by doing it prematurely. Your financial well-being is definitely a worthy cause in of it's own right.

2. I'll start to save or save more when I make more

This thought process is completely wrong. In fact, I can't think of a way better way to hurt your financial health. Think of investing and saving as muscles; use them or lose them. Get yourself used to saving a portion of your income now. Do you really think you're going to start later? Even if it's $10 or $50 per paycheck, you need to start.

3. I had a bad day or a great day!

Not surprisingly, it goes both ways: comforting the pains of a lousy day or celebrating the ups of a good one. I'm guilty, myself, of going out to eat on pay day. You can make a list, that doesn't involve spending, to combat this. Often times, free things can be more gratifying than splurging.

4. I work hard - I deserve it!

You're not alone, though. A lot of people work hard, everyday... day after day. You may even start to think after saving for a while, that you've shown you capable and deserve something for it. Instead, start rewarding yourself for saving and not spending.


The first year has been my, and probably yours, hardest journey for starting to save and invest your money. Stick with it and when your money starts working for you, you'll know what to do.