How many times have you been in a store and convinced yourself that you simply had to have that shirt, pair of shoes, tool, car…that pretty, fancy, shiny thing?

Now, after making that purchase how many times did you feel a pang of regret by the time you walked to your car and shoved the bags in the backseat?

How many of those “must have” purchases still have the tags on them in your closet, 1 month, 3 months, 1 year later?

How many of those “must have” purchases are you still paying for, 1 month, 3 months or 1 year later?

We’ve all been there!

Now a different question.

How many times have you saved up for a family vacation, a special dinner at your favourite restaurant or for great seats to see an amazing band?

Have you ever regretted these experiences?

I’ll cut to the chase….

I never regret the EXPERIENCES. I can do without most of the THINGS.

I think most of us can live without the things….we need to stop spending money on stuff that doesn’t matter.

I remember my mom saying this when my sister and brother were young.

“You will grow out of the clothes, you will lose interest in the toys but you will never forget a good experience.”

We were a middle class family. My parents worked really hard to give us kids a great life, and they succeeded.

We never had the most expensive clothes or the flashy brand name snowboard or a shiny new car parked in the driveway on our 16th birthday (a ridiculous expectation) BUT, we had a childhood full of amazing experiences.

My mom started taking us to live theatre when we were still in elementary. Every year my parents would save up and take us to see Rent or Cats.

My parents took us camping, hiking, biking and swimming.

They took us on long road trips which were so fun for us kids but, looking back, must of been so much work and probably a total nightmare for them.

Imagine - three kids stuffed in the back seat fighting and whining along with a 100 pound long haired German Shepard…stinky.

They took us for special overnight stays at hotels, to the water park, to summer music festivals.

They rented cozy little cabins on our favorite lakes so we could be close and spend time together.

My mom would wake us up in the middle of the night to watch the Northern Lights in our sleeping bags on the front lawn.

These are the “things” I remember.

In a credit card culture of instant gratification it’s important to take a step back from the “things.”

Things aren’t inherently bad. Many things serve a purpose.

But, when it comes to deciding how and where you should spend your hard earned dollars I will argue that you can you live a full life without all of the SHINY THINGS whereas, it’s the great experiences that make life worth living.

When you look back on your life as an old man or woman, what do you think you will remember? The things? Or, the people, the relationships and the amazing experiences?

How you decide to spend your hard earned dollars is completely up to you. But, I think it’s very important that we THINK before we PURCHASE. Make sure you are consciously spending vs. impulse spending.

There is no shame in buying beautiful, shiny THINGS that you really, really want. I am just suggesting that many of us would benefit from putting in a little extra time and thought before we spend.

Here are 5 questions you should ask yourself if you want to stop spending money on things you don’t need.

1. What do I value?

When you spend your money on the things you truly value, you will never regret it.

I have spent thousands and thousands of dollars on travel. I have not regretted that decision for one second. For me the value that I get from travel far exceeds the dollar amount.

Sit down and take some time to really think about what is important to you. Rather than just spending haphazardly on stupid shit and then wondering where all of your money went, actually take some time and think about where you want your money to go.

Related Post: 9 simple tips to improve your financial future in your teens and early twenties.

2. Is it time for a budget?

I don’t necessarily agree with a lot of things that this man has to say but I do like this quote…

A budget is telling your money where to go instead of wondering where it went. ― Dave Ramsey

If you are making a decent living but still living pay cheque to pay cheque and unable to figure out where your money has gone….make a budget. It doesn’t have to be complicated.

Pull out a piece of paper. Write down how much you make and then make a list of your expenses. Your expenses include your fixed costs (bills that stay the same month to month like rent, car payment etc) and variable costs (bills that can change month to month, like money you spend on clothes or restaurants and booze).

The goal of making a budget is to see how much money you have, how much money you need to cover your bills (a.k.a fixed expenses) and then how much you have left over for variable expenses and savings.

If your bills exceed the amount of money you make, then you need to make more money or get rid of some of your expenses (sell your car etc).

I am reminded of another quote…

If you can’t measure it, you can’t manage it.” - Peter Drucker

Meaning — when you start to budget your money and pay attention to your numbers (a.k.a when you start measuring where your money is going) this will allow you to manage your spending. This will help you to stop spending money on things you don’t need.

3. Will it be important tomorrow, three months from now, 1 year from now?

Again, before you make a purchase take a minute to think…will I be as excited about this “thing” tomorrow?

Will this sit in my closet with the tags on?

Am I buying this because I need it or because I am depressed/ bored/ happy/ sad/ a shopaholic?

Budgeting will help to automate this process. Being aware of where your money is going, looking at your piece of paper/spreadsheet and seeing that you spent $600 at restaurants will likely make you adjust behaviour.

4. Am I trying to hard to keep up with the Joneses

We have all been guilty of this at some point. You see what your friends, neighbours, acquaintances (or even strangers…thanks social media) have and you want it too.

The grass is always greener on the other side….or at least it appears so.

Related Post: Is Everyone Richer Than Me?

Remember, you don’t know your friend/neighbours/acquaintance or that strangers bank account balance.

They could be drowning in debt to purchase that new car/house/pair of shoes.

So stop comparing THINGS.

Focus on you.

Remember, in the long run that new car will be old, that big house will take way too much time to clean and those new pair of super expensive shoes were worn only once because they fu@%ing hurt to walk in.

5. Do I have enough money to buy this?

This seems like a no brainer.

If you don’t have the money, you cant afford it.

But, in our credit card culture we convince ourselves that we can “afford it.”

“I’ll just put it on my credit card for now and pay it at the end of the month….”

Sigh….

If you really want something, if you have thought about it and it aligns with your values then great, start saving.

If you want that thing bad enough you will find a way to make the money and save for it.

Do you want to stop spending money on things you don’t need?

Okay, are you up for a challenge? Do you want to stop spending money on things you probably don’t need? Implement these 5 tips for one month and see how you feel. Your bank account will thank you!

I want to hear from you. Do you have any great tips that help you to stop spending money on things you don’t need?

References

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