I’ve noticed a trend in my life, and perhaps you have seen it as well in your own life. It seems that things which are short-term urgent tend to trump items which are long-term significant.
Here are two common examples:
- Purchase a video game for our child (who already has 85 games) but there is no money saved for his college education
- Spend our money at yet another expensive restaurant (only to be hungry again 3 hours later), but refuse to save money for the health insurance deductible even though we know that we WILL get sick someday
This issue is best defeated by having a monthly budget (short-term plan) as well as a fully thought out “Plans, Hopes, and Dreams” list (long-term plan).
When you know the actual dream that is being sacrificed when faced with a short-term urgent item, there is a much greater likelihood that you will overcome that temptation.
QUESTION: What is the one short-term urgent item in your life that seems to keep destroying your finances and erodes your ability to fund your long-term dreams?