Let’s say you’re in debt and you can’t seem to find any extra money to put towards paying it off. You are trying hard to make ends meet, but you don’t know where all the money goes. Self-control sometimes escapes you, but money is for spending, right? If you can’t keep yourself from splurging, I have a simple solution: quit buying stuff you don’t need.
When we are out shopping at the mall, watching commercials on television or surfing the Internet we come across advertisements or products and suddenly think, “I want that! No, I need that!” You pull out the plastic and before you know it you are the proud owner of the latest what-cha-ma-call-it that is bigger, faster and better that the one you are already had.
You feel great (for about an hour) and then you get the sense of guilt that you quickly push away. “Dang it! Why did I buy that? Oh well, my friends will think I’m cool, right?” And that’s it. Instead of returning the purchase, you head deeper into debt when the money should have been saved to pay off your loans or credit card.
Why not stop this trend and create a new habit in your life to stop the splurges? Just simply think to yourself:
“Would I rather own this or be out of debt?”
Just try to justify that splurge purchase to yourself when you think of it this way. I dare you!
Common, everyday expenses and purchases for a large portion of the population become extremely illogical when you phrase them in this context. Here are some examples:
- Would you rather spending $30 going out to eat at Olive Garden or be free from debt?
- Would you rather have the biggest HD television with the holy moly cable package or pay down your credit card balance?
- Would you rather spend $80 a month on a cell phone data plan or save money for retirement?
- Would you rather own 400 DVD’s and Blu-Rays on your bookshelf or be out of debt?
- Would you rather be addicted to caffeine and buy soda or coffee everyday just to function or be debt free?
- Would you rather have a fancy new car with horrible gas mileage or not have to payback your student loans anymore?
- Would you rather have a house that is too big for you and that you can’t afford the payments on or sell it and live a simpler life in a small apartment?
You don’t have to buy things just because everybody else does. Be different. Live minimally. Quit buying things you don’t need.
Your wallet will thank you.
{ 10 comments… read them below or add one }
Great post, Caleb. The absolute best way to get rich is to live below your means.
That’s all it takes. Spend less than you earn and save the difference. The rest comes after that.
This is a very effective question. I’ve talked myself out of many unnecessary purchases with it.
I’ve noticed that avoiding advertising as much as possible is a great way to prevent the desire for more “stuff” in the first place. Last year my husband and I cancelled our cable subscription and sold our television. Even though we recorded almost all of our favourite shows and fast-forwarded through the commercials it was amazing to see how much less stuff we wanted once we stopped seeing any commercials.
I never would have guessed that they had such an influence on us!
Perfect Example Lydia. I try to avoid commercials for this reason. I either try to get up and walk around, put the television on mute or change the channel.
It drives my fiance crazy, but if it helps us spend less money on unnecessary expenses, I say its worth it!
Good point. This post reminded me of George Carlin’s stand up comedy. You might have seen this before, but if not, you’ll love it.
http://www.youtube.com/watch?v=MvgN5gCuLac
By the way, have you heard of MJ DeMarco and his book The Millionaire Fastlane? It’s a great read - he’s a strong advocate of getting rich quick, though he differentiates getting rich quick and getting rich easy. The former requires hard work and the latter is what sketchy marketers and the like advertise. You can listen to his interview on Pat Flynn’s site - check it out if you haven’t
Thanks Masa. I hadn’t see the George Carlin stand up in a long time and thats exactly how some people live! I think storage units are the perfect example of how American have too much stuff.
I hadn’t heard of The Millionaire Fastlane. I’ll have to check it out!
Living in the country that epitomizes consumer spending, not buying the latest “whatchamacallit” is extremely hard. Debt, notwithstanding. I can set at my computer desk and look around the room I’m in and pick out AT LEAST 10 things that I probably shouldn’t have bought. But, I got them cause I thought I NEEDED them.
The bottom line is the only thing we NEED to have is food, water, shelter and clothing. Everything else, more or less, is considered optional.
Thanks for the wake-up call, Caleb!
Anytime Kevin! There are specific needs in our life to survive, but people confuse their wants with their needs way too often.
(Nudists would even argue that clothing isn’t a need
My house is no palace, stuff needs to be done all over. The reason is simple, rather then trying to impress friends and neighbors with Jacuzzis and marble top work surfaces I have been steadily over paying my mortagage for the last 10 years. My mortgage is now paid off I have saved myself $1000s in additional interest and now I too can concentrate on making my home look nice. I have never considered Debt to be cool or stylish, its been made to appear that way by clever marketing to the “must haves” who have gradually become just plain greedy and who are now racked with debt. I honestly predicted something like this was going to happen in the global markets in the late 1990s with western governments reliance on borrowing to keep funding their countries. I am not smug, I despair for what has become of us all. its hightime time people learned to live within their means, Iphones are smart but will you starve if you don’t have one? debt is a misery, and the old saying of “Neither a borrower or lender be” seems as apt now as when it was written 500 years ago
HI…full agree and this one the MOST “Would you rather spend $80 a month on a cell phone data plan or save money for retirement?”
It’s amazing that 80*12=960 per year all to check an email or play online. I know it’s essential for some to have all the bells and whistles, but for most, a flip phone and an ipod touch work just fine.
Thanks for the post