Financial pride is a thing and it can be a long stressful life if you can’t take pride out of finances. Nobody wants to be guided with how they manage money, but if that were the case, then all the bad decisions people made financially would’ve never occurred. That gut check you sense when you’re about to make a sizable expense is the exact warning, to help you reconsider such a devastating financial event. If you find it OK to take multiple vacations a year because you think you can afford it, while you continue to live life paycheck to paycheck that’s a perfect example of non positive financial pride. Financial pride (negative meaning) can be a simple mindset to fix, steering you to make unwarranted financial decisions that are not financially optimal. How to stop financial pride is simple and you will see the answer below.
For example I almost purchased a used car for 4 grand just to drive it on the weekends. Rationality went out the door because I wanted a new shiny toy, but after thinking it through, I decided I needed to fix a few projects around the house first. What if we could just take a moment to decide whether a purchase makes sense in our lives? Would everyone avoid spending and live a so called miserable life from those who relate spending and happiness?
Why is it that people who spend a lot, think people who don’t spend a lot, live unfulfilled? The first step to getting around how to stop financial pride is to not believe money & spending equates to happiness. If you’re happy you live happy, and spending 60K on a new Lexus shouldn’t define that happiness. Or maybe by taking 3 vacations per year, you think it can possibly shoot your happiness gauge up a few notches. The experiences coupled with memories should make you feel better for sure, but if it means you just added debt to have fun, then that is counter to happiness.
One day people will realize the difference between the two forms of life’s experiences. One comes free with no attachments or strings aka using readily available saved up cash for big ticket items. The other comes with feelings of buyer’s remorse, guilt, and stress for the foreseeable future with debt. This simple trick is the difference maker in separating people from financial smarts to financial ruin.
Granted if you are maxing out financial goals, giving with a purpose, have ample emergency funds and you still have cash left over for misc. spending. I don’t see anything wrong with spending those dollars. It takes dedication to stick to a financially savvy plan, because the alternative is following how indebted people act on social media. They presumably dig themselves deeper by living a fake luxurious life. The question that should be asked is does living a fake luxurious life mean I am abusing financial pride? I believe the answer is yes.
How to Stop Financial Pride
Put money Goals on a higher priority
Live life, but don’t risk financial stability for the excuse to live life
Excessive purchases and spending is no way to live in a financially responsible manner
Assess if big ticket purchases (aka Multiple vacations) will hurt future ultimate freedom (Not funding 401K or IRA’s because of said purchases)
Ask if financial pride is a factor in a decision to show off or keep up with joneses
Living with massive debt, and still trying to chase luxuries.
Making less than 20 dollars an hour and wasting most of it on consumption.
Not giving back to people, charities or organizations because spending habits are out of whack
Tweet ThisHey guys let me know what tips you have on How to Stop Financial Pride?
Rich Uncle EL
I think the first step for me is being honest of what I really want in life. I need to make sure that I keep myself happy and spending money on things that I don't care about what others think. Peer pressure is tough when you're young. Especially in your 20s. I definitely wish I didn't try to keep up with some of my friends in certain areas. I would have saved a thousands 🙂
Yes being young and unaware of the value of money is a handicap many young face. They Eventually have to play catch up later on in life.
I made a ton of financial mistakes in my early 20s, but I thankfully learned from all of them. Now, I live my life completely on my own terms. Yes, technically, I've achieved FIRE, but I still work. I'm always looking for new business ideas, and I'm launching this new blog in hopes of turning it into a business (I anonymously own some other profitable blogs). It's a matter of personal preference and knowing that money doesn't define you!
That’s good you stay busy in fire. We all need to find a purpose in life. Keep on hustling my friend.