Um... hang on. Isn't this blog supposed to be about saving money, not spending it?
Well, if you really think about it, spending and saving are predicated upon each other. If you spend badly, you'll have nothing to save. And if you don't save, you'll have nothing to spend.
So yes, in this post, I'll be talking about when and how to spend money on things that are wants rather than needs, and that are significantly expensive, without breaking the budget, regretting your buys or wasting money. Believe me, it is way too easy to do all of those: and I've made spending mistakes way too often. It is out of some of those mistakes that this blog post was born.
So, how should I spend money?
First Things First
Put all of your saving, debt repayments (hopefully zero), giving and essential fixed expenses (like rent) into debit orders that go off as soon as you get paid. Commit to NEVER EVER EVER using the credit card to a greater balance than you still have tucked away in your bank account. Then you literally won't have the money to make catastrophic errors: it will be safely tucked away, out of the reach of impulse buys.
This really shouldn't be optional.
Assuming that this is done, and that you have carefully worked out that you do in fact have the money to buy whatever it is... what next?
Acknowledge previous mistakes
We've all bought that gimmicky item that looked so good in the advert or on the mannequin. Spending well starts with accepting that sometimes you've spent badly, and identifying why you did so. Are you a sucker for good advertising (like I am)? Do you buy expensive items if you're hungry? Do you make excuses for buying too many clothes?
Acknowledging your weaknesses will enable you to avoid repeating mistakes.
Get a second opinion
If you know that a certain area or type of expenditure is a danger spot for you (because of course you acknowledged past mistakes!), get an (honest) second opinion from someone that (a) you can trust and (b) will give you a sensible opinion. Often a spouse or sibling is a good option: you don't want someone who would be afraid to hurt your feelings by saying HELL NO!
Sad but true: often when I've asked for a second opinion it is because I have a sneaking suspicion that this expenditure would not be a good idea... knowing that you should ask can be your brain's safety catch when you actually know that you shouldn't.
Sleep on it
We're assuming that this projected expenditure isn't a need. Your life doesn't depend on having it. In which case, there is no rush. Don't fall for the sales-chatter: go home and think about it; for several days, weeks or months if necessary, depending on the size of the expense. Often by the time you get back to your car (or bicycle) you'll find that you don't really want it that much. Impulse buys are definitely the enemy of sensible spending.
In many other cases, even if you still want it, a small amount of research will reveal a better or more economical version of the thing you desire. Calmly looking at the options online may also remove the psychological pressure of having a salesperson hovering over you and telling you all the reasons you should buy it immediately (though in my opinion if someone is pressuring you to buy, you should walk away immediately, as a matter of principle). Either way, waiting a while means you'll be able to make a smarter, more informed decision.
If nothing else, you'll be more confident that you really do want it. And I've spoken about the benefits of delayed gratification before, right?
Does it improve your quality of life?
So, how do you know if you really want it? I like to ask myself a series of questions regarding the difference that this item is going to make in my life:
Is this item going to improve my quality of life
To wise, successful spending!
jjdaydream
Well, if you really think about it, spending and saving are predicated upon each other. If you spend badly, you'll have nothing to save. And if you don't save, you'll have nothing to spend.
So yes, in this post, I'll be talking about when and how to spend money on things that are wants rather than needs, and that are significantly expensive, without breaking the budget, regretting your buys or wasting money. Believe me, it is way too easy to do all of those: and I've made spending mistakes way too often. It is out of some of those mistakes that this blog post was born.
So, how should I spend money?
First Things First
Put all of your saving, debt repayments (hopefully zero), giving and essential fixed expenses (like rent) into debit orders that go off as soon as you get paid. Commit to NEVER EVER EVER using the credit card to a greater balance than you still have tucked away in your bank account. Then you literally won't have the money to make catastrophic errors: it will be safely tucked away, out of the reach of impulse buys.
This really shouldn't be optional.
Assuming that this is done, and that you have carefully worked out that you do in fact have the money to buy whatever it is... what next?
Acknowledge previous mistakes
 |
| In order to learn from our mistakes, we need to reexamine why we made them. Photo credit: Andy Maguire (CC-BY 2.0) |
Acknowledging your weaknesses will enable you to avoid repeating mistakes.
Get a second opinion
If you know that a certain area or type of expenditure is a danger spot for you (because of course you acknowledged past mistakes!), get an (honest) second opinion from someone that (a) you can trust and (b) will give you a sensible opinion. Often a spouse or sibling is a good option: you don't want someone who would be afraid to hurt your feelings by saying HELL NO!
 |
| Sometimes you just need someone else to tell you NO! Photo credit: sboneham (CC-BY 2.0) |
Sleep on it
We're assuming that this projected expenditure isn't a need. Your life doesn't depend on having it. In which case, there is no rush. Don't fall for the sales-chatter: go home and think about it; for several days, weeks or months if necessary, depending on the size of the expense. Often by the time you get back to your car (or bicycle) you'll find that you don't really want it that much. Impulse buys are definitely the enemy of sensible spending.
In many other cases, even if you still want it, a small amount of research will reveal a better or more economical version of the thing you desire. Calmly looking at the options online may also remove the psychological pressure of having a salesperson hovering over you and telling you all the reasons you should buy it immediately (though in my opinion if someone is pressuring you to buy, you should walk away immediately, as a matter of principle). Either way, waiting a while means you'll be able to make a smarter, more informed decision.
 |
| Sleep on it: given how much they sleep, kittens must make the BEST DECISIONS EVER. Photo credit: Moyan Brenn (CC-BY 2.0) |
Does it improve your quality of life?
So, how do you know if you really want it? I like to ask myself a series of questions regarding the difference that this item is going to make in my life:
Is this item going to improve my quality of life
- Tangibly? (e.g. not a new set of dishes almost identical to my current set)
- Permanently? (e.g. not a fashion item that won't be wearable next year)
- Ethically? (e.g. not a new car which guzzles petrol and destroys the planet)
- Sensibly? (e.g. I will still be able to buy groceries for the rest of the month)
If the answer is yes to all of those questions, you've slept on it, and you've consulted your trusted buddy about it, then I wouldn't feel bad about going for it! Life is meant to be enjoyed. You've saved, you've given, and you've been prudent. You've thought very carefully about whether this will really improve your quality of life. So, go ahead and enjoy it!
 |
| Go ahead, take a bite of that ice-cream! Photo credit: Jökull Auðunsson (CC-BY 2.0) |
jjdaydream
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