Women spend $25,000 on shoes and in Britain L 133,000 on beauty products in their lifetime.* Saving for retirement or saving period gets pushed aside with the “I want what I want and I want it now” pattern we consumers are so good at.
One of the biggest mistakes women say they make with their money is not saving enough for the future because they’re caught up in survival today. This is an interesting dilemma because by spending today and not saving for the future, the struggle is likely to be the same in ten or thirty years. Contrast this with one young woman, Kari, who considers herself a “money hoarder.” She started saving half her paycheck as a teenager. She finds it hard to spend money on herself, but she’ll be fine in retirement. There aren’t many Kari’s out there.
Putting ourselves on a savings plan feels the same as being on a diet. Yuk. We feel restricted, limited – it’s NO FUN. Or we feel we’re in jail waiting for a chance to bust out – shoe sale anyone? According to Gary Becker and Kevin Murphy in “A Theory of Rational Addiction*” when you're struggling economically you’re unlikely to focus on long-term activities. The immediate is much more compelling.
There’s a mind-set change that needs to happen to be able to have some shopping fun, while keeping in mind the long term goal of having financial peace in your later years. Just think about how good those shoes might taste if you’re trying to make it at 75 on social security alone.
*Daily Express Study quoted: http://tinyurl.com/2a2cvjw Mail Online http://tinyurl.com/67z36fd
* The Awesome Column, Joel Stein, The Times May 2012