Do You Have an ICBM (Impulsive Consumer Buying Missile) Defense System?

ICBM

To get out from beneath your burden of debt and live the life of your dreams, you need an ICBM Defense System that will help you avoid temptation.  Managing the many marketing strategies intended to elicit feelings of lack and want is crucially important.  Each and every day you live in our consumption culture, merchants, advertisers, media outlets, and creditors are launching these missiles at you in an attempt to get at your wealth.  One creditor’s motto of “What’s in Your Wallet?” makes me laugh.  That’s because “in your wallet” is where they want to be.  In order to protect yourself from the ICBM bombardment, you need to have a plan.

Here’s how my ICBM Defense System works. You don’t have to use mine exactly as I do. You can use it as a guide in creating one that will work for you.  But don’t fool yourself; you’re going to need one.

Set a Limit
Sure, there are times when you just need to buy something.  And my Debt-FREE Millionaire Plan does advocate treating yourself from time to time.  But remember—this philosophy has a built-in limit set for that recommendation.  That limit is directly tied to your Cash-FLOW Index™.  When you hit a milestone and eliminate a debt (or a number of debts) you should treat yourself.  That limit may be one or more months’ worth of CFI money.  Whatever limit you choose, be sure that you take the time to set one—and stick to it.

Use Cash as Your Point of Reference
Let me say that again: Use cash as your point of reference!  If you don’t use cash as the reference point, then you’ll use something like your checkbook (or, perish the thought, a credit card).  Any point of reference other than cash will almost guarantee that you’ll spend more than you planned.  Don’t let that happen.

For example, suppose the limit you set is $100. With a $100 limit, an $80 purchase is going to have to be something really special.  Because that’s 80 percent of your limit! Only the use of cash will remind you of that. If your checkbook is your limit, then your point of reference will be whatever balance you see in the checkbook register.  And usually that balance will be more than your chosen limit.  An $80 purchase seems a lot smaller if it’s compared to a checkbook balance of, say, $1000 instead of the $100 in your wallet. That’s 10 times greater than the point of reference the cash in your wallet sets (8 percent instead of 80 percent). This greatly increases (by 10 times) the chances that you’ll spend the money without the consideration you would give if your point of reference were the cash in your wallet.

When it comes to a credit card, the only point of reference is when the cashier tells you that the card has been denied. And that’s the absolute worse point of reference at all!

I have more ICBM strategies to share. Stay tuned!

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