A while back I created a page about things I splurge on. But then I thought it would be just as important to delineate things I don't splurge on. After all this is a money blog and I focus on wise spending. Everyone has different money values, and there is no way I would tell someone what exactly they should spend their hard earned cash on. But, remember that you can and should draw a line between splurges on random stuff and smart spending based on your values. This will help you spend wisely and stop regretting those impulse buys (you may even have less!).
Write down your budget categories or "money values" on a piece of paper or take these "money values" and rank them:
- Entertainment
- Outdoor Activities/Sports
- Social/Friends
- Family/Significant Other
- Pets
- Clothes/Accessories
- Personcal Care/Spa
- Accommodations/Living Space
- Retirement & Savings
- Travel
- Education
- Philanthropy
Another version of this exercise is given in the book "Putting money in its place" by Ken Rouse, using these key words:
- Achievement
- Adventure
- Aesthetics and culture
- Authority/Power
- Financial security
- Friendship/Love
- Health
- Independence
- Integrity
- Philanthropy
- Recreation
- Service
- Spiritual growth
- Wisdom
- Work
Personally, that ranking translates to my drawing a line and deciding to spend less on these items:
- Personal care (make-up, massages, etc.)
- Basics (Clothes)
- Food / Dining out
- TV
- Concerts
Of course money values change, just like people change as they grow older. So revisit when necessary!
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| Spending money on a concert of sorts, but it was cheap and it counts as "hanging out with old friends" |
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