Which one do you do, boy?
Today we’ll be exploring a concept that lies at the heart of personal finance: do you live in the present or in the future?
I suspect everyone is somewhere on the line that rnns from live exclusively in the present to live exclusively in the future, but very few people are at the very ends of the scale (and they probably find it hard to function in society).
People that live in the present focus on their current needs and desire.
Those that live in the future focus on planning and preparing for later needs and desires.
Taken to extremes, both of these are harmful. Live too much now, and your future self will suffer from your current lack of preparation. Put off living too long, and you won’t know how to enjoy yourself of be in any position to do so.
This video is a really fun example of how important self-control and the ability to delay gratification can be:
I’m probably guilty of the opposite: I spend too much time making plans and thinking about the future. Lots of people in the personal finance sphere seem to be the same.
My main resolution for this year is to change things up a bit and have more fun day to day.
Of course, being present and having fun doesn’t have to mean spending more. It can even mean spending less, if you apply the concept of mindfulness. What makes you happy?
For me, spending time outside with loved ones makes me happy, but I don’t do it very often.
A balance of living now and living later is one of the keys to a happy and secure life. If you’re doing too much of one at the moment take a minute and figure out how to balance things out.
How about you? Do you live in the present or live in the future?
That guy’s video was hilarious–and very cute!
This topic reminds me of a concept I came across in a home-study course i did recently about the psychological/spiritual aspects of our relationship with money. The course was a bit “woo-woo,” but it did have some interesting ideas in it, one of which was to explore how our unconscious attitudes towards money can effect the way we deal with it.
The course defined eight “financial personalities” or “archetypes” (a la Jung) that people usually have within them to greater or lesser degrees as a result of their upbringing, social conditioning, etc.
A very brief summary:
The Guardian: Always alert and careful. Double-checking all the numbers.
The Pleasure Seeker: Prioritizes pleasure and enjoyment in the here and now.
The Idealist: Places the greatest value on creativity, compassion, social justice, or spiritual growth. Tends to see money as kind of “evil.”
The Saver: Seeks security and abundance by accumulating more financial assets.
The Star: Spends, invests, or gives away money to be recognized, feel hip or classy, and increase self-esteem.
The Innocent: Avoids paying significant attention to money, believing (or hoping) that life will work out for the best. Kind of the “head in the sand” approach.
The Caretaker: Gives and lends money to express compassion and generosity. The “provider”
The Empire Builder: Thrives on power and innovation to create something of enduring value.
So we might have some or all of these aspects and some will be stronger or more dominant than others, for example someone who is mainly a “pleasure seeker” and an “innocent,” but weak in the “guardian” and “saver” departments will have a hard time “living in the future” and holding onto money for very long.
The idea is that none of the archetypes are inherently bad–they all have their positive and negative aspects, and finding a good balance is best.
As someone who has naturally been a “live in the present” spendthrift type for most of my life, I envy you for being the opposite!
Hi MT
Great stuff. I think I am mostly a Saver now, but I wasn’t in the past. I guess you can change by learning and noticing things…