To Poverty in a Prada Purse

Ok, we all know what it is like to have a long, hard day at work and treat ourselves after to a nice, costly purchase. After all we earned it. While this might be true, it is also fact that spending to justify something in our life is a bad habit to get into. As women we know this technique well. Maybe it is to get the purse that others will associate status to…or maybe the new wardrobe that screams corner office. Either way, let’s for a moment put our emotions aside and think about the future.

As a financial advisor, it is common to watch females, more than males, spend themselves into poverty. The here and now seems weightier than a savings account, so before we know it, and many credit card debts later, we have forsaken a basic lesson—save first then live on the rest. It is crucially important to max out all 401k contributions or start a self-employed savings plan, and put away for the future before going out shopping. Your priorities will stay much more in line if you follow these few guidelines:

*Set a budget and get a grip with how much you are saving month to month
*Start small or large with your committment to savings each month, just make sure it becomes a habit
*Plan and follow long term financial goals—and review them regularly
*Limit the number of credit cards
*Contribute to 401k or other retirement accounts with direct deposit so that it is being put away before you have a chance to touch it
*Take the emotional experience of rewarding yourself through spending money and instead find things to do that don’t require money to boost your self esteem (working out, time with friends, read a good book, etc)

Don’t live your life beaten down because you can’t purchase something. Instead, feel good about shopping when you have put aside money to treat yourself. You will never have buyer’s remorse when you have saved the money ahead of time…and believe me, your retirement account will thank you as well.