Compulsive Shopper can't Save and Put Away Money

“You have probably heard the expression ‘he’s a compulsive shopper’, and I think that you have never heard ‘he’s a compulsive saver’. Compulsive shoppers will raise their children to be compulsive shopper and sometimes, worse than they are. I try to teach everyone we know our little secret, and I can mention two specific cases. One is of a very young receptionist that came to work with me and following my suggestions she gathered money to invest; with the interest she purchased a pretty and modest house, which she keeps tidy and clean, she also bought a car and still keeps her investments. The other case is an ambitious young man who received the same advice but wouldn’t pay the price of waiting. He preferred not only to spend the money, but to apply for credits to keep appearances; so he bought clothes, then a car and then a house, and to the date he has not finished paying either of them and his credit is saturated. With this example you can see that the person that drives a luxuries car, or lives in a big house or whose closet is full is not always the wealthiest. The problem is not living as a millionaire, but living as a millionaire without being one. If they both continue that way, she will probably achieve her financial independence; he, on the other hand, is only trying to support a high lifestyle to impress people who don’t even care, don’t even notice him, and won’t help him when he’s not able to work anymore. I consider it’s a high price to pay to support a swollen ego, and with this we once again prove that a person’s paycheck doesn’t provide financial liberty, their savings do.

“I read a phrase by Thomas Stanley once: ‘Wealth is not the same as income. If you make a good income each year and spend it all, you are not getting wealthier. You are just living high. Wealth is what you accumulate, not what you spend.’