Psychology of Money
Some of you who have either worked for me, been raised by me, or mentored by me know how strongly I feel about the psychology of money and the strength of rewarding yourself when you accomplish something. Having made a career in sales, there are plenty of reasons and motivations around this. When you have a great year, and you exceed your commission or bonus plans, I have always been a proponent of marking these accomplishments with something tangible, some memento that you can remember almost like a trophy.
Sure, the sensible and responsible thing to do is to put the extra money in the bank or invest it, and you absolutely need to do that with the bulk of the money. But I think it is just as important to commemorate the achievement (because big years don’t come all the time), with something that you’ll look back years from now and remember how good your accomplishments felt. The “reward” of course, should be commensurate with the level of achievement (don’t spend $25,000 if your bonus was only $10,000 – I actually have someone on this thread in mind). The actual percentage is up to the individual as well as where you are in life, your lifestyle, your other responsibilities, etc.
As much as the memento is important, understanding that your career is the journey or “the ride” and you need to enjoy the fruits of your labor. If it is all about the final destination (retirement), you’ll miss so much of the fun along the way. While I don’t regret anything or any choices I made along my personal professional journey, there are times and moments I wish other than perhaps not having taken more time to enjoy my loved ones a little more. Time is the one commodity that you can never get back, so it’s important that you chose to spend it wisely, and if you’ve made sacrifices in your personal life to achieve these financial goals, be sure to buy yourself something as recognition.
These “rewards” should not be vacations. Those dollars should come out of your regular budget and the reason why is, vacations create memories, but they aren’t “trophies”. So, whether it’s a Porsche, a Rolex watch, a Birkin purse or a country club membership, or a beach house, try to make it tangible and something you see, or visit, or show off, a trophy if you will. Something that brings you great joy and especially when things aren’t going great, because there will be moments during your career when you’ll need to reflect on better times. And it’s great if you want to buy a prize for your spouse as well, but it is vital that you reward yourself!
Just the opinion of one simple man who needed motivation on a regular basis.
