Are you house or car poor? Was that dinner out really worth it? Did going on the vacation make your life better?
When I think back to the times I stretched myself beyond my spending ability I don’t get happy feelings, now at least. However, at the time I felt great! We are human and we make many mistakes, but one that occurs often is our need to please ourselves over the short term, which in many cases hurts us over the long term.
Anwar Sadat, who served as Egypt’s president from 1970 until his assassination in 1981, described the dangers of over-indulging this way:
“Most people seek after what they do not possess and are enslaved by the very things they want to acquire.”
Short-term gratification on that indulgence, whether it is the nicer car, the bigger house, the longer vacation, or the dinner out, feels great at the time, but ask yourself this: does it feel great now? I see too many situations where people have over-indulged in the past, and in doing so, ruined their current financial position.
We must learn to live within our means. If you have the funds to buy the luxury car, to do the five-star dinners out, then, by all means, do so, but don’t if you haven’t built an emergency fund, purchased the proper insurance, or saved the necessary amount for retirement. You’ll thank me later…