Spending With Every Day in Mind

We see it all the time, commercials telling us we’re just not hip enough unless we wear the latest pair of jeans. Or a TV show featuring a mailman living in a $2,500-a-month apartment in some exciting city. It seems our lives are rather boring when compared to others, or at least the image of others. So what do we do? We try to live a life that we think adds excitement, a life that perhaps really isn’t our own. These are the times when we may get into trouble with our spending.

Everyone’s spending habits are different, some even unrealistic, but you should always strive to be a smart spender. What does that mean?

Here’s one thing to consider—are you spending money on a life you think you lead? In other words, if you live in Missouri, do you have a closet filled with saltwater fishing gear? Or skiing outfits? Gretchen Rubin of Psychology Today created a “Happiness Project” that includes her Secrets of Adulthood. One of those secrets is, “What you do every day matters more than what you do once in awhile.” That philosophy can cross over to how you spend your money.

If you live in Missouri and purchase a multitude of saltwater fishing gear that you use just once a year, chances are you’re spending too much on “what you do once in awhile” rather than “what you do every day.” Think about your nature. Sure, you like the spray of saltwater in your face as you reel in a huge billfish, but that’s only you for very short periods of time. What do you spend more of your time doing? Gardening? Golfing? Reading?

How about those expensive designer cocktail dresses? Sure, they look great on you, but they spend most of the time in your closet. Or perhaps you’re an avid runner. You’ve been meaning to get a new pair of running shoes because you’ve logged so many miles in your current pair, yet you have a closet filled with expensive dress shoes you wear much less often. All that money is spent for shoes you use once in awhile rather than money on the shoes you use nearly every day. “What you do every day matters more than what you do once in awhile.”

You can even think of this smart spending thing on a grander scale. For example, there are those who buy a large home because they like to entertain family and friends around the holidays or an occasional dinner party. While hosting gatherings of family and friends is nice, would you really spend all that extra money on a house that can accommodate 15 when you have only a family of four? All that extra money and space so you can entertain a few times a year? Your mortgage will be higher. Taxes. Utilities. Insurance. Maintenance. All higher all year long for the sake of a few social functions? Once again, smart spending.

Obviously, everyone’s priorities are different when it comes to spending money, and as long as you can comfortably afford your decision regarding spending, there’s no harm. The problems come when we try to live beyond our means and get ourselves into financial trouble. Bottom line, it’s always a good idea to give any purchase considerable thought. One last thought to consider from Gretchen Rubin: “We’re happiest when our decisions most closely match our natures and our values.”

Remember, Vantage offers financial counseling for all members through Accel. This service is free for Vantage members and can help you with such things as personal and family budgeting, money management, debt repayment and more. If you need advice about your finances, feel free to contact them!