Do you drink the damn latte?!

 “Spend extravagantly on the things you love, and cut costs mercilessly on the things you don't love.” - Ramit Sethi 

The question is really not whether you should have your latte, but rather, have you done your homework? Have you defined which are the things you truly love and feel essential to your emotional well-being? You have larger goals and you’re postponing them or even placing them at risk if you spend lavishly and indiscriminately on everything. Let me repeat that, there’s a larger goal at stake here!!!! Which larger goal? 

Well, my friend, you seem to not have done your homework.

“Playing the long game means taking the necessary steps, now, to set yourself up for long-term success. It means not sacrificing long-term gains for short-term wins.”

Allison McWilliams, Ph.D., Psychology Today

Research has shown that it’s challenging for humans to make sacrifices today in exchange for future reward. In one study, 14 Princeton University students where asked to choose among denominations of Amazon gift cards while their brain activity was being monitored. Ready for the kicker? 

The dopamine-related brain areas that dominated short-term choices among the students were exactly the same as those known to be activated when addicts are craving drugs. 

Similarly, the vast majority of people are simply addicted to chasing after the next trend: “IT” bags, a Jetset lifestyle, 5 star dinners, etc. And this continuous loop of making money to spend it, is the surest way into financial distress. Let me clarify, I am not asking you to sacrifice the things you love. But what I am saying is that you need to understand yourself better and think long term. Don’t just be a John or Jane Do, buying what everyone thinks is cool. That won't bring you happiness. Freedom to decide which boss you work (or if you want a boss at all) will. Freedom to decide what you want to do with your time – certainly will. 

So the question really is... did you already dig deep within yourself and get a solid understanding of the things that drive YOUR true inner happiness. Have you outlined on what you want to spend and where you plan to mercilessly cut costs going forward? 

Lastly, do you have a clear understanding of where your money is flowing? Because if you have ever found yourself wondering if you can afford a purchase, then you might have too little clarity on how your expenses are broken down. And for the record, when you ask yourself “Can I afford this?” the answer ALWAYS is NO! No, because you haven’t done the very basic homework. Not knowing is fatal.

F**-Off

I want to end this by talking about one of my favourite things: the F**-off fund. Sometimes you need the freedom to tell someone to F**-off in your life, be it your boss, your boyfriend/girlfriend, or even, your husband/wife. The first step to your freedom is to have a F**-off fund. Do you have a F**-off fund in place? No? Then you can’t afford the purchase. 

And yes, for the time being not even the latte. 

I am sorry, my friend, but I am trying to help you to take the first steps to full freedom and this will mean slight sacrifices now and then. But trust me, this is going to be a fun ride. A ride on which you’ll gain a massive amount of confidence and trust in yourself and your abilities. Because you really do have everything you need to make the whole Money Game something that you win! Keep on reading for more wisdom, insights, and inspiration! 

Love, Nadine