Entitlement Can Quickly Ruin Your Finances
As I progressed in my career, money followed. Not anything unreasonable, but a salary that could finally afford some of the things that I wanted. But, you know what they say, “more money, more problems.”
In truth, I can't blame the money, it was a lack of preparedness on my part, to receive it. I didn't know anything about money as I never had any. I thought riches were reserved for successful people.
Whenever I received a raise or a bonus, my lifestyle improved. I've never been an expensive car type, but a luxury apartment, you bet. And, I'm a shopper, so I bought clothing and accessories galore.
This is called lifestyle inflation. There was no question in my mind that this was how money was intended to be used.
Entitlement can quickly ruin your finances
Money is used to buy things, and if you work hard, you'll earn more, and more you shall have. Right?
If you had to pick a successful person out of a crowd, how would you decide? The best dressed, or well-groomed? The car they drive, or their high-rise condo?
Being honest, don't you want those things? I sure did, and I do.
There is a very good chance that the reason you want all of those things, or your version of those things is ego. It sounds bad, I know.
Money tends to come with a sense of accomplishment, which is fine. But, it can often come with a sense of entitlement too. A state of mind that can quickly ruin your finances.
Lifestyle inflation and wealth are competing forces
Lifestyle inflation and wealth are competing forces. It's not a complicated equation. The more you spend, the less you save, and the less wealth you'll obtain over time.
Income is not the same as wealth.
If your lifestyle is inflated, you may be at serious risk. If you were to lose your job and were unable to replace that income, the things that made your self-worth would quickly collapse.
Try building wealth with your success, instead of inflating your lifestyle, it will have a positive lasting effect on your self-worth.
Be happy simply knowing that you could afford something, instead of actually buying it. You'll notice the desire to make that purchase is fleeting.
This can be a powerful tool.
As you build wealth, your feeling of security will increase, allowing you to focus on other more important things.