Want To Improve Your Finances? Just Say ‘No’

by Gary Foreman

Do you really want to improve your finances? It can be as simple as saying one little word. Learn how just saying ‘no’ can prevent a financial overdose!

If you are old enough, you may remember Nancy Reagan’s campaign against drugs. To this day, I can still remember the slogan: just say ‘no’ to drugs.

It clearly explained the goal with a simple-to-understand message. Saying ‘no’ could help you avoid pain and make your life better.

The same thing is true in the world of personal finance. Sometimes, saying no can prevent problems and improve your finances.

Let’s take a look at some examples of how just saying no can prevent a financial overdose.

Say No to Buying More Home Than You Can Realistically Afford

Since the early 1970s, house sizes have grown by roughly 62%. Yet the size of our families is about the same.

Buying too much house will almost certainly sink your budget. You shouldn’t spend more than 30% of your after-tax, spendable income on housing (including utilities).

The biggest problem with spending too much on your home is that it is very hard to correct. Other areas of your budget aren’t big enough to overcome the problem. Often, the only real solution is to move to a more affordable home.

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Say No to ‘No Payments Until…’ Offers

If a deal looks good to you because you won’t have to make a payment for months (or even years), then you probably can’t afford whatever it is.

The seller is making the offer because he is betting that you won’t have the money later and will be forced to make payments on a loan with high interest rates.

Don’t take the bet. Most consumers lose.

Say No to Rushing Into a Buying Decision

Years ago, my Dad emphasized that it was a good idea to put off many purchases until tomorrow.

You might wake up to find that buying isn’t as important as it seemed yesterday. You might have thought of another way to get the same result without spending the money or just decided that you could live without it.

You’ll also avoid a lot of scams. Most con jobs need you to act before you’ve had time to think through the offer seriously. The vast majority of big financial decisions can wait for one day.

Say No to Believing That Owning Things Will Bring Real Happiness

Sure, we need food, clothing, and a roof over our heads. If we don’t have those things, getting them will bring happiness. But once you get past a certain point (middle income?), more things don’t mean a more enjoyable life. (See Will More Money Make You Happy?)

Face it, any happiness you can buy at a store will be short-lived. Soon, whatever it is will begin to lose its luster. There will be newer, fancier versions available and you will own the ‘old’ version.

On a related subject, just say no to allowing things to become more important than people. If you want real happiness, look to your family and friends. Their love is more valuable than anything you can buy.

Visit the elderly and ask them. Their best memories are of people, not of possessions.

Related: Income, Debt and Happiness

Say No to Letting Others Dictate Your Standard of Living (and Expenses)

Just because someone else is foolish enough to buy a car they can’t afford doesn’t mean that you should.

The bumper sticker is wrong. Dying with the most toys does not make you a winner.

Say No to the ‘You Can Have It All’ Mentality

Set aside the fact that you don’t really need it all. But why set yourself up for disappointment when you can’t get it all?

Every day, there are people creating new things for you to want. It’s pretty safe to assume that they can come up with new things faster than you can acquire them!

Related: Being Thankful for Having Less

Say No to Daydreams of Getting Rich Quickly

It’s a trap. Countless people have lost money on both legal and illegal schemes to make huge piles of money overnight. Don’t join them. The odds of winning big are very slim.

You’re more likely to be hit by lightning than to win the lottery (seriously).

Saying no doesn’t mean that you have to give up your hopes of attaining some wealth.

If you work 40 years (and most of us will) earning only $50,000 per year, you will earn $2,000,000. So a lot of money will pass through your hands during your life. It’s up to you what you do with it.

Is just saying no enough?

Well, no, it isn’t. Saying no while you sign a new five-year car loan isn’t going to help. You have to say it and follow up with the appropriate action.

But choosing to ‘just say no’ can help you and your family achieve financial freedom.

About the Author

Gary Foreman is the former owner and editor of The Dollar Stretcher. He's the author of How to Conquer Debt No Matter How Much You Have and has been featured in MSN Money, Yahoo Finance, Fox Business, The Nightly Business Report, US News Money, Credit.com and CreditCards.com.