Why Do I Spend Money?

And to get back into writing this blog, I started thinking about ways to save money, the question I ask myself and you should ask yourself is why do I spend money?  Take a moment to think about that.  Then take out some paper and a pen and write down the reasons you spend money.

Of course, there is the obvious and legitimate reasons we spend money (the basics – food, clothing and shelter).  But then there is everything else.  We buy things out of boredom, because we are depressed or just trying to impress others.  I used to buy CDs when I was sad.  If I had that money now.  I certainly don’t have the CDs any more.  Trying to impress others is a waste of time and money.

Somehow we associate buying new things with being happy.  My experience is that rush of happiness does not last long.  We buy things to numb our emotions (and I’m not talking about drugs and alcohol).  Money doesn’t buy happiness.  That is one thing to remember.

So with your paper and pen, write down all the reasons you spend money.  Cross of the legitimate ones and look at the ones that are not legitimate.  Think about why you purchase these items and are they really needed.  Think of what you could do with that money if you didn’t spend it on these “illegitimate” things, like paying off debt or saving/investing.  Think of things that you could do other than shopping to deal with your emotions.

I’ve stopped buying so much stuff and have saved and invested more since I’ve started questioning everything I purchase.  I also like to keep my wallet empty.

Good luck!