Don’t Let Money Burn a Hole in Your Pocket

How are you about hanging onto your money. Is it easy for you to save? Or does money just slip through your fingers?

Money Can Be Slippery

money floating away

For many people, money goes as quickly as it comes. Sometimes even faster.

Yep! It is simply hard for some people to hang on to a dollar. In a Gunsmoke episode once I remember Matt talking to Doc about Chester being broke and having a hard time keeping his money. Doc asked, if it was women or gambling. Matt said, “I don’t know Doc, Chester is the kind of fellow who can lose money standing in the shade!”

That is the way it is with many folks. They never have any money because they seem to spend everything they get as soon as they get it.

Money Is for Spending (?)

When I was young I remember my dad talking about another kid who was anxious to go to town for something. He described him as having got hold of a nickel and it was burning a hole in his pocket.

That description applies to a lot of folks who are always broke. As soon as they get some money in their pocket they become focused on getting somewhere to spend it.

Why does this happen? A lot of it has to be the result of their focus. Many people spend all too much time thinking about what they want to buy. All too many spend hours just walking up and down the aisles in their favorite box store exploring all the new opportunities for spending.

If you do this you are bound to spend more than you need to spend. While I would never do this myself in general, I confess that I have often strolled up the tool row of my favorite farm store looking at the various power tools and accessories. And, yes, there are more than I need in my shop as a result.

Money is for Saving and Investments

If we think more about saving and investment than we do about spending we are more likely to save and invest more. It is human nature.

piggy bank labeled escrow account

One of my favorite savings projects over the last few years has been my escrow account. When I paid off my home mortgage I decided to set up my own account to save enough each month for taxes and insurance when they came due during the year so I would not have such a large payment unprepared for. It works well.

After doing it a while I improved on it a bit by getting a year ahead, then two. Now I am working on three. I do not expect to go further, but it does feel great to think that if all else fell apart I could pay for my taxes and insurance on the house to keep a roof over my head—at least for two or three years.

What to Do With Your Money

OK, I admit I am a little nerdy about my escrow account, but the point is clear isn’t it? We use our money in ways that we think about.

Think more about constructive ways of using your money and less about spending. If you do you are much more likely to have money in your pocket than unneeded things stored in your closet.

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  1. […] when you plan to organize a party for Easter in 2013. When you plan a frugal Easter party, you can avoid burning a hole in your pocket. So, you can enjoy your long weekend without splurging your hard earned money. […]

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