Control Your Spending and Borrowing, and You'll Control Your Financial Future

Neither a Borrower Nor a Spender Be

When I was growing up, my mother often quoted William Shakespeare's "neither a borrower nor a lender be." Wise advice, if you can stick to it.

Nowadays, borrowing to buy a home is considered by even the most conservative financial experts to be a good move, but spending is a big problem, as evidenced by the millions of Americans who are in debt over their heads. Nowadays Shakespeare might be more likely to advise us to "neither a borrower nor a spender be."

It's spending, not low income, that is at the root of most financial problems. Sometimes events beyond our control can propel us into debt, like the loss of a job, the death of a spouse, or large medical bills, but let's face it: for most of us, spending is what gets us into trouble. In fact, I believe that the key to having money is learning not to spend it.

Notice that I didn't say "learning how to spend it," but rather, "learning not to spend it.

The more money most people make, the more they spend. If they get a raise in salary--they buy a newer car, or a bigger home, or a bigger, better whatever. But it's not just the big things they buy, it's all the little things they now feel they can easily afford, and those things add up amazingly quickly.

You may find that over the years, although you're making significantly more money, you're no further ahead, or you still struggle to meet your financial obligations.

The words used in the campaign against drugs also apply to over spending: "Just Say No." One of the keys to resisting the urge to spend money is to have concrete financial goals, things that are important to you. Set a timeframe and a dollar amount for reaching the goal. Then when you're faced with the temptation to splurge, think about the goal you're working towards. Visualize it as clearly as you can. See it. Taste it. Smell it. And just say "no."