The other day I was sitting back taking inventory of my finances. I’ve recently gotten a raise at work and the state of my finances certainly reflected that. I’ve been contributing 10% to my retirement fund and my balance has returned 20% this year. My emergency fund is well stocked and I’m well on my way towards my goal of having a down payment on a house next summer. My wife and I live a very blessed life. We’ve set aside some money already for Christmas presents and were able to go out to eat some this past weekend. Life is good I thought, perhaps I’m saving a little too much; we deserve to live life a little more comfortably. I had to snap myself out of it, what was I saying? That I should stop saving as much and can afford to spend a little more money each month? I’d realized that I’d fallen into a trap of contentment.

There’s an old saying that states “if you’re not moving forward, you’re moving backwards”. I’d realized that I’d gotten a little too comfortable recently and that in my comfort, I’d put future savings goals on hold for present comfort goals. It’s certainly easy to get side-tracked on our financial plans. Future things like: retirement, financial safety nets and buying a house can quickly seem far away when we’re not focused on the end prize. Financial distractions like supersizing our meal at McDonald’s, getting our morning $3 latte from Starbucks or buying that cute new outfit can and will pop up all the time. It’s easy to lose our momentum and drive and get sucked into the trap of contentment.

Eye on the prize

Let’s let ourselves daydream for a bit. Picture your future retired self. Where are you? I’m on a warm beach somewhere, and don’t have a worry in the world (except that the tide will reach my chair). Does that sound similar to your dream? Worry free and able to pursue your passions? Well achieving that dream of future freedom requires sacrificing some of your money and satisfaction here in the present. You’re depositing a part of your present with the knowledge it’ll be multiplied and returned to you in the future.

I know it’s not easy setting aside money each month for my retirement plan. I realize it’s not easy to say ‘no’ to going out with friends, especially after getting a raise at work. Dave Ramsey has a famous quote that says, “If you will live like no one else, later you can live like no one else”. That’s what it’ll honestly take for me to achieve my retirement dreams. I have to have a budget and stick to it. When I get a raise at work, I’ll have to increase the amount I deposit into my savings account and then increase the amount I spend on fun.

All about the mindset

The key to being successful with your finances isn’t necessarily saving more and spending less. They key is having the right mindset. It should be a mindset with an end goal in mind. It should be a way of approaching your finances with the mentality that where I’m at isn’t good enough and that I can always do a little better. I can always find ways to be smarter with my money.

Always keep yourself in check and do whatever it takes to avoid falling into the trap of contentment!

Thanks for reading? Here’s another two you might like:

Two no brainer ways to save for retirement

Mint.com, the best way to manage yor money?