Do you feel guilty about what you spend? Maybe both. The way we think and feel about money can be very different for women and men. The psychology of money. To have your personal finances under control can mean a great sense of power. I’m not talking about being ‘rich’ but having confidence that you can pay the bills and have a lifestyle you enjoy. Perhaps it’s not as luxurious as you’d like but maybe you have a plan for that!

The key is to know yourself and your weaknesses. More specifically how your weaknesses manifest themselves financially. If you have a bad day and feel down, do you go shopping? Perhaps buy some things that give you moments of pleasure and gratification but are forgotten a week later? Perhaps you can’t afford what you just bought. Do you feel guilty about spending your money that way?

Discerning between a need and a want is a must. Knowing whether you can afford a want is a skill because it means that you have enough knowledge about the state of your finances to know to make the decision. It also means you have a plan and can evaluate the immediate temptation purchase in respect to a larger plan.

How do you do it? Next post – some tips and tricks to help us all.