![]() If you have paid yourself first in the form of savings for the future, are on top of your debt obligations in that you can comfortably afford them and have easy access to cash for emergencies then go ahead and spoil yourself. It’s about priorities…… There’s no problem in buying nice things if you have your priorities in place. Did you know that the debt to GDP ratio of the US (the largest economy) is 100%. America owes what it produces… The evidence is found in the debt ratios of households which expounds into the debt ratios of countries. Today, as adults, are we any different? We find all sorts of reasons to purchase things in search of social acceptance. It was evident that each child went through a lot of pain to delay their gratification to get their reward. Not so long ago a bank made the point in an advertising campaign where they filmed some children with a sweet in front of them challenging them to leave it for a while to get a bonus sweet if they lasted. The ability to wait a little longer for things you want. Let’s start from the very beginning… If there is one huge lesson in life that parents can teach their children it is to delay gratification. This is the pathway to creating wealth which will liberate you from the payroll as you reach a stage whereby your future investments can provide your income. You see, if you spend first and don’t pay attention to saving first then you take yourself out of the magic of compounding over time. Wealth comes from compounding over time…. ![]() Cars, houses, clothing, holidays we take, etc… these purchases define us in our social circles and we place a significant importance on them which impacts severely on our financial independence into the future. ![]() ![]() A huge problem we face is that many of us need to be seen as successful and we demonstrate this through the things we buy. This, I believe, follows through your personal finance. The need for social acceptance is amplified through the many social media platforms highlighting a basic need in all of us. The media allow a single individual to engage with a massive audience empowering them to be heard on a scale unimagined just a few years ago. The explosive world of social media is driven by the need for social acceptance. ![]()
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