When I receive a paycheck or extra money from a racket, I used to find myself battling with the urge to splurge.

I always justify my purchases with reasons like “I work hard, I deserve this reward.” Or “I still have a lot of money in my bank account, I can afford this one shopping spree.”

I’d pick up clothes, shoes, magazines even if I don’t really need all of them.

All the way to the counter until the cashier flashes that symbol ls2208 price scanner, I would psych myself up with the feel good vibe that comes from retail therapy.

After I walk away with my purchases, a little voice inside me computes the money I just spent versus my bank balance and asks, “Did you really need to spend all that?”

Of course, I’d ignore that voice and just keep on spending. Next thing I know, my account is down to a minimum and I find myself pining for the next payday to arrive.

It’s a vicious cycle that can be very challenging to overcome if you’re not determined to quash it.

But more than this, it’s a bad habit that can make you or keep you poor.

I read somewhere that the difference between poor people and wealthy people is the way they value their money.

When a poor person gets money, he asks himself, “How do I spend this?”

When a wealthy man gets money, he asks himself, “How do I make this grow?”

That one shift in mindset can make a huge difference in your personal finances and in turn makes you think twice about splurging unnecessarily.

Poverty and wealth are both dependent on the financial choices we make everyday.

The concept had such an impact on me so much that I’ve tried to manage my money better ever since. It’s still a trial and error thing but I think I’m making progress.

Tagged as: how to be wealthy, Money, wealth