10 surefire ways to spend more than you make
Posted
Dec 19 2007, 09:12 AM
by
Karen Datko
Rating:
This post comes from partner blog The Dough Roller.
Are you struggling to spend all of your money each month? Do you get to the end of the month, only to learn that cash is just sitting there in your checking account? Well, if you've got this problem -- and who doesn't? -- here are 10 surefire solutions:
Stop tracking your spending. When I see a family with excess cash each month, nine times out of 10, the problem is they're keeping track of what they spend. So turn off that spreadsheet and uninstall Quicken. And while you're at it, go ahead and disable the check-engine light in your car.
Buy more house than you need. Buying a monster house and financing 100% of the purchase with a first mortgage and one or two equity lines of credit is a great way to rid your bank account of all that excess cash. Oh, and make sure the loan comes with a variable interest rate and interest-only payments. You may spend less at first, but don't worry, in a few years money will by flying out of your checking account like chili out of a drunken sailor.
Lease a new car each year. An oldie but a goodie. Make it a fancy import, and you'll supercharge your spending.
Buy now, think later. Life is short. Work hard, play hard. You only live once. You can't take it with you. So when you see that plasma TV, or country club membership, or Rolex watch, or Jet Ski, buy now and think later.
Charge! Don't pay cash; charge it. I know this seems counterintuitive. After all, our goal here is to spend cash. But to reach that goal, you must think long term. Charging your purchases may save some cash up front, but give it a few months or a year, and you'll be spending more cash paying off those cards than you ever dreamed of. (Remember the drunken sailor.)
Invest in real estate with no money down. Dive right into the deep end with some no- money-down real estate investments. In no time you'll be spending money on broken air conditions, new roofs, and legal costs for tenants who don't pay their rent. Now, I know what you're saying: What about those infomercials and cheesy books that promise real estate riches in no time using other people's money? Great question, so see my next tip.
Spend lots of money on real estate infomercials and cheesy books. Not only will you be wasting money in no time, but you'll develop a false sense of security to help you dive into real estate (see the previous tip). If you need a push, repeat after me -- real estate prices never go down.
Use your ATM card like a rented mule. What are ATM cards for but to withdraw lots of cash. If you use it enough (and follow Tip No. 1), by the end of the month you will have burned through tons of cash and, as a bonus, will have no clue where all the money went.
Don't talk to your spouse about money. This may seem like odd advice, but I've found that if you don't communicate with your spouse about money, spending it frivolously becomes a lot easier.
Don't plan ahead. Don't plan for the car insurance payment due in a few months, or your yearly life insurance premium. And don't save ahead for vacations or gifts. Let these expenses surprise you when they come due, and you'll really drain that bank account fast.
Well, there you have it. Oh, and if there's anybody out there who actually wants to spend less than you make, pretend this is Opposite Day. (I learned that one from my kids.)
Other articles of interest at The Dough Roller:
"10 fun and free Web sites to look up the value of your home (and your neighbor's home)"
"Using a rented Nikon lens in Guatemala"
"The myth of zero-down real estate investing"
