One of the issues that crops up a lot in our world today is the issue of whether or not we really need to spend money on something. This issue comes up mainly because it’s so easy for us to just go along with what’s expected of us and our finances, and we don’t stop to evaluate the way we are spending money.
It seems obvious that you spend money on multiple TVs, and that you have a big birthday party for your kid each year. However, the truth is that you probably don’t need to spend money on those things. A lot of the things we spend money on are really products of what we’re told we’re “supposed” to do, but these are things not really needed.
Why are You Spending Money on That?
The first step to reining in your spending, whether you are trying to save for retirement, get out of debt, or just stop spending so much money each month, is to figure out why you’re spending on the things that you buy.
Introspection is rarely fun, but it’s necessary if you want to get to the bottom of your spending puzzle. Look at the reasons behind your spending. Are you trying to make your kids happy? Do you hope to impress the neighbor or your sister-in-law? Or do you genuinely feel that your spending will enhance your life?
Even if something isn’t a true need, spending money on it isn’t necessarily a bad thing, as long as you are happy with the expenditure, and you think it will enhance your quality of life, and your overall enjoyment of life. It’s one of the reasons that I decided to stop spending money on cheap stuff that I didn’t care for, and be more selective about buying nice things that I enjoy, and that will last a long time.
Take a step back and figure out the “why” behind your spending. Would your kids be just as happy with a different type of party? Does it really matter if your co-worker is impressed with your latest outfit? Do you really need your sister-in-law’s approval of your big TV? If you can find alternatives, the reality is that you will find that you are no longer mindlessly spending money on things that don’t matter to you.
Moving Beyond What Society Tells You
We see ads all the time that tell us that we need or deserve something. We also see pictures of what’s “normal” when we watch TV, or hear others talking about what they have. If you want to avoid financial ruin, it makes more sense to move beyond what society is telling you. Instead, think about what you want your own life to look like, and what would satisfy you. This isn’t always easy, since the peer pressure is always there. However, if you can block out some of the noise, and instead focus on what makes you happy and what enriches your life, you will be far more likely to feel good about your spending.
Well, many of us have a problem with understanding what is necessary and what is not. Quite often I catch myself thinking that I’m going to spend money on this or that thing but then I wonder if it’s a necessity? It’s extremely important to understand the difference between our wants and needs. I try to make a list of expenses every month to see what I really need. If there is some spare money then I buy something for myself and put a part to the emergency fund. It’s necessary to set right priorities and pay bills, cash loans first and after think of your personal needs.