As the old saying goes, “Money can’t buy happiness.” This is true, to an extent. Money is not bad. You will not be unhappy because you have money, just like you won’t be happy because you don’t have money. Happiness comes from within; it is something we create.
But we all seem to have a problem with this creation. Most people these days think that money, in fact, does equal happiness. They find themselves purchasing that new pair of shoes or that third watch because buying things makes them feel good about themselves. It creates temporary satisfaction, however, it doesn’t last long, and a purchase definitely doesn’t provide us that ethereal happiness we are longing for. If you can’t be happy when you don’t have a lot of money, you will not be happy having more, either. The ability to appreciate what we have is the same when you have little as when you have more.
Things will not make you happier. In fact, excess and clutter around your house will harm your productivity levels and make you even unhappier! A good life is not determined by the items you own. However, learning to spend wisely will make you happier in the long run. You will not have to precariously walk through your house that is filled with the endless amount of items you have bought and never used. Waste is going to cause you stress, especially if it pairs up with lack of money or with debt hanging above your head.
Overspending wreaks havoc on your finances. It steals your peace of mind by throwing you into debt. Overspending is a cunning monster. It comes to you wrapped in a ribbon and bow and looks like cool new products you have to have. But once you buy these new items, you realize you have been tricked into debt once again.
Most people could spend less. They find themselves spending more money than they need to because they get carried away when they see advertisements. These advertisements trick them into thinking that if they buy the product listed, they will be happier, sexier, funnier, etc. Well, guess what? It is all a scam. These advertisements will only make you poorer.
How to map out your spending patterns
Decisions, decisions, decisions! Does it ever seem like your brain is on overload from all of the decisions you have to make? If it does, you are human! Some sources estimate that the average adult makes around 35,000 decisions during the course of one day, with over 200 of those decisions being just about food! Even children are not immune from this as it is believed the average child may make around 3,000 decisions a day. It is no wonder that by the time the afternoon rolls around, we are all ready for a nap! Being decisive is hard work!
As we get tired or overwhelmed, we may find that we do not make our best decisions. We may rush decisions, make poor ones, or revert to autopilot in an attempt to give our brains a break. And to top it all off, many of our decisions may take place on a subconscious level where we aren’t even aware we are making choices that can have a big impact on our lives.
We would probably be shocked at how many of our daily decisions are related to spending money. Our financial wellbeing is way too important to just leave to chance. We need to make a conscious commitment to help ensure that our financial decisions are sound ones. Identifying your “good” spending habits-the ones which add positive value to your life—and distinguishing them from the “bad” spending habits that you may make on impulse or come to regret is an important step.
Here are some questions you can ask yourself that just might help you sort the good habits from the bad and get you on the right track toward financial security:
Is it in line with what is important to you?
People often make the mistake of thinking that saving is the only path to financial security. While saving money is certainly an important component, it is not the only piece to the puzzle. Spending money isn’t all bad. In fact, when you spend money on the things that you truly value in life, your life can be enriched by it. The problem is when we all too often spend money on things that we don’t really care about just because it’s easier, or we do it out of habit because we always have before. Maybe you go buy healthy produce at the supermarket, but then you run in to buy a new outfit or pair of shoes at your favorite store because it’s just across the street. Or maybe you buy something because your neighbor or friend has one and you are trying to keep up with them.
You may convince yourself that the things you are spending money on are important to you, but you might be surprised to discover that many of them aren’t. Set a budget and then write down all the things you spend money on for a month. Take a good hard look at your list to see where your money is really going, and then decide if it’s in line with the things you value or if you need to make some adjustments.
Is it helping you build wealth?
Spending money on things that can help you build your wealth may not be your most enjoyable or exciting purchases at the moment, but it can be very beneficial to you down the road. While you would likely rather spend money on a vacation or a new car, spending money to pay down your student loans or buying new computer for your business can be a major step toward helping you make more money and the financial security you are striving for.
Ask yourself where you want to be in five or 10 years, and then take the steps today to help you reach your future goals. People who can “keep their eye on the prize” are better able to make the difficult spending decisions and save for or invest in their future long-term plans.
Does it make you happy?
Many purchases may give you a temporary boost to your mood, but if they are impulse buys, you may find that the boost quickly turns into a feeling of regret as you wonder why you did that. In order to avoid this, hit the pause button before you make a spending decision. Stop, take a deep breath, and ask yourself if it’s something you really want to spend your money on and if it will bring you happiness in the long run. Take five to 10 minutes and walk around the store before you decide to buy something. That may be all you need to give yourself a little clarity about whether the purchase is in line with what’s important to you and will bring you some lasting happiness.
