Toshl Blog

Money Affects Everything

guest post by Melissa Tosetti

What I’ve learned over the last 15 years of living The Savvy Life and eight years of writing about it, teaching it and working with clients is that money affects everything. It affects where we live, what we eat, how we dress and what we do with our free time. What you spend in one area directly affects how much you have left to spend in the other areas of your life.

This idea of how money affects everything goes beyond saving money at the grocery store or waiting until those new pair of boots go on sale before buying them. It’s about…

  • Knowing where you stand financially on a daily basis so you can make intelligent fiscal decisions.
  • Choosing to purchase only things you love and make you happy.
  • When you do go out to eat it’s because you want to go to that particular restaurant, not because you’re too tired to cook or don’t have any groceries in the house.
  • Creating an environment in your home that is warm and inviting because when you’re not comfortable at home – you’re likely out spending money.
  • Having a wardrobe made entirely of clothes that fit and look great on you.
  • Enjoying your time off even more because you planned for it and know you can “afford it”.

To illustrate this point, I’ll give you a brief comparison that I use in my book, Living The Savvy Life, of the lives of the proverbial Average Woman and that of a Savvy Woman:

An Average Woman

An Average Woman has no idea how much money is in her checking account at any given time. She often uses her debit card with a knot in her stomach, hoping it will not be declined.

She has a closet overflowing with clothes, few of which can be pulled together into a complete outfit. Many of the clothes in her closet still have the tags on them because she realized she has nothing to wear with the item once she brought it home. She continues to purchase clothes at random, always feeling the need to buy more.

She finds herself in the drive-thru several days a week because her kitchen cupboards are bare. When she does buy groceries, she does so without a plan and isn’t quite sure what to do with them once she gets home. When she goes to her favorite high-end restaurants, she feels a tinge of guilt as she pulls out her credit card to pay the bill.

She takes a vacation at least once a year with several weekend getaways interspersed. She finds herself preoccupied while on holiday since she was just on the verge of paying off her previous vacation when she headed out the door.

An Average Woman is a consumer who keeps buying, hoping the next item she purchases will magically create the life she so desperately wants.

A Savvy Woman

A Savvy Woman knows exactly how much money she has in the bank and always spends less than she makes. Her growing savings account gives her a confidence that is visible to others.

She has a pared down wardrobe comprised only of clothes she loves, look great on her and make her feel good. She is a style setter, not a trend follower. She never purchases an item for her wardrobe unless she has fallen in love with it.

She cooks the majority of her meals at home. She has numerous dishes mastered and is always on the lookout for new recipes to add to her repertoire. She has a black belt in grocery shopping, and her pantry and refrigerator are stocked full of ingredients ready to be made into delicious meals. The fact that she cooks the majority of her meals at home allows her to enjoy the occasional meal out at her favorite high-end restaurant, without guilt to spoil the experience.

She has an appetite for adventure and consciously saves money for those long weekends away and the trip to Italy she has been planning for the past year. When she vacations, the trip is paid for prior to departure, so it is a true holiday.

A Savvy Woman picks and chooses what she brings into her life, being selective versus mindlessly consuming. This control over her financial life allows for even greater joy of life.

Are you ready to start Living The Savvy Life?

Melissa Tosetti is the author of the financial lifestyle book , Living The Savvy Life and is the founder of The Savvy Life, a day-to-day financial education company.

Posted in Guest posts