Self-sabotage in wealth accrual

Hi there folks.

I mentioned in my last post that I would like to discuss the topic of self-sabotage in trying to maintain a consistent savings schedule in the journey of wealth accrual. In the past I have battled with this demon repeatedly. I would be on my merry may saving my pennies every week and watching my bank balance grow then, suddenly I would hit this savings glass ceiling. I would reach a point in my savings and feel compelled to make a major purchase or use the money for some 'good' reason. Thus bringing me back to square one, feeling deflated, demoralised and desperate.

I'm sure many of you have found yourself in this situation. You are making progress in your savings but then 'thwack' like a bolt from the blue all your hard work is hit by some unexplained financial dilemma. Then you beat yourself up for a while thinking things like, 'well I really needed that new hi definition plasma' or 'How many times does your best friend get married?'
or the classic, 'Once I've got this (insert generic must have product) I will be happy, complete.'

Sound familiar? of course it does. Because this is they way we work as a society. We, as consumers, are compelled to purchase items that we perceive as bringing with them some kind of status. Be that social or sexual. This is clearly evident in the marketing of luxury brands.
What images do the names Luis Vuiton, or Armani evoke in your mind's eye? I would gamble visions of grandeur, luxury and success. The truth is,(get ready for this) ...they sell clothes. Pieces of cloth that we use to cover our sexy bits. That's it.

Of course we've been conditioned to believe that owning such goods give us a sense of importance and status. Which to some extent is true. Now, I'm a realist and I know all about the importance of presenting oneself and how others perceive us. The cold hard truth is, if you earn $800 a week and you spend $1000 a week on looking the part, you're a just a slave. You're working for the system.

My point is, worry about that stuff later. Don't go into debt for the privilege of owning a designer bag that won't be vogue in two months. You can't judge your own personal wealth by how others perceive you. You need to set your own personal goals and benchmarks. Don't feel guilty about purchasing high brand, quality goods, but you have to justify the purchase and take note of what you are getting out of the transaction.

This finally brings me to address the topic of this post. Self -sabotage.
This is a very complicated topic which probably deserves its own blog. However, I would like to cover some factors that I believe contribute to this phenomena. The most prominent being self worth and social conditioning.

I grew up in an average household. My father worked full time for the electric company, SEQUEB at the time, and my mother worked part time at the bank. I wouldn't say we were poor (which is a completely relative form of evaluation), but let's settle for lower, middle class. The bills got paid, but we didn't take big trips on vacations and we really held out till the last moment to get a VCR (before DVD in case you don't know).

Now I don't want to take anything away from my parents. They did the best they could and always provided for us as far as they could. The problem is , I was being guided by a poor perspective, one that was always blinkered by the fact that we were poor and that that's where we belonged. And finally this brings me back onto topic.

Many people, the world over, sabotage their financial future simply for the fact that they feel unworthy of attaining riches or success. They have grown up surrounded by advice such as:
'the only way to get ahead is work hard', or 'you can't do that, nobody in this family has ever achieved anything like that'. or 'There's no use trying that, a bigger company will kill you'

There are too many examples to quote. The crux is, you are not your family, your mother, your father or your current financial situation. However, you have been conditioned by all these factors to have feelings of fear and unworthiness of pursuing these goals.

It is vital that you break free of any guilt of negative feelings you have about accruing wealth, as these feelings are like a self-fulfilling prophecy. Leave these emotions at the door. Don't blame anyone or anything. Not your upbringing, your education, or your poor past decisions. You always have now to decide: I'm going to change my path. Focus on the positive and positive things will happen.

To wrap up this very long winded post (sincere apologies). I would like to suggest some simple techniques that will hopefully prevent you from sabotaging your road to wealth.
Numero uno: Do you really need it? I hope it's not an impulse buy that is risking your future financial success. Remember, in 6 months the same product will be retail for 30% less and there may even be a better model on the scene. Do you really need it.
Ask the question: Will I be richer or poorer if I proceed with this course of action?

Numero dos: Think positively. You deserve all the success that comes your way. Think about how you could help your parents and loved ones with wealth that will come with an attitude of appreciation. If you think positively and believe in yourself (no, this is not a Disney promo) anything is possible

Numero tres: This is an obvious one. Don't be a stupid dummy. Live within your means. Always remember your current situation is temporary. Be patient. avoid the credit cards and start working on building a financial buffer.

Thanks for reading guys,
and talk to you soon,

Park Namsu