We all work to have money, but why do we want money? Is it because we want to be able to afford the finer things in life, or is it because we let our money define us? The motivation behind our finances determines how we behave financially and how responsible we are with our money. Some people are motivated by the option to buy nice things or take nice vacations; some people are motivated by the option to have more than others. What motivates your personal finances?
My personal financial goals motivate my personal finances. I save for my retirement because I have a retirement goal, and I save in my emergency fund in case I lose my job or have an unexpected emergency. I also save in my Employee Stock Share Plan because my employer contributes on my behalf and it is free money for me. I don’t save just to build up my net worth because I would rather spend that money on personal experiences.
I don’t care how much money I have in the bank because if we don’t use our money then it is worthless. In order to have value money has to be spent. Do you like to brag about your money? Some people are defined by their net worth and they save every single penny in order to increase their net worth, buy why? If you don’t have goals then why are you saving? Maybe you were advised by your parents or grandparents who lived through the great depression to save money in case of another tragic economic event. Has anyone experienced a recent tragic economic event?
Does your class status motivate your finances? Maybe the status of Middle Class, Upper Middle Class or Upper Class is important to you. Maybe the neighbourhood you live in, or the type of car that you drive are important to you. The amount of income that I declare each year on my personal tax return may define my money class, but it does not motivate me. As long as I have enough money each year to achieve my financial goals, fill my hungry belly, and have a warm (clean) place to sleep every night I am happy.
My class status is irrelevant to me, and frankly I feel that classes do more harm than good to a society. We are all people and we shouldn’t judge each other based on how much money we make. My current personal financial goals include saving for retirement and taking a trip to Europe each year. Next year I am going to Naples Italy.
Why do you pay off your debt every month? Maybe it’s because you don’t like to pay interest, or maybe it’s because debt burdens you. For some people the idea of debt is unsettling. Maybe the need to not owe money to anyone motivates your finances. I try to pay off my VISA balance every month because it helps build and maintain a good credit score.
Even though I have no intention of applying for additional credit in the near future, I feel that my credit score is a very important part of my financial life. Unlike my net worth, the number of my individual credit score is important to me; this is because it directly affects me as an individual. Net worth and Class Status are comparisons between us and other people, and that does not interest me. Finances are personal, it is not a competition.
What motivates your finances? In other words why do you get up in the morning and go to work?
Photo by LuluLemon