Live & Maintain: Part 2- Spending

Last week, I wrote about the importance of Saving but for those who haven't read it, click here to read it now.

Unlike Saving, Spending is the one 'S' out of the three that we probably know the best. It's hard to think of a time where we haven't spent money for longer than a 48 hour period. From the dawn of civilisation, people have spent in exchange for something else. From gold, cotton to even people being sold as slaves. It could be argued that as long as you can get the money for it, anything can be purchased.

Before this becomes a history lesson, let's fast forward to the present day. Consumerism has taken over society and we're spending more than ever before. Double-dip recession what? If we want something we all find ways of finding the money to spend on it, whether those means are legitimate or not is another topic entirely.

So what's wrong with spending?

Nothing. There are so many necessary products and services that provide basic, beneficial roles in our day to day lives that cost money to be produced so of course we need to spend money to obtain them. There are also hundreds of thousands of products that although not contributing directly to our quality of life, make it more enjoyable, productive & interesting.

There is however something very wrong with having to justify the money you just spent, especially if is justifying it to yourself... This usually occurs when Spending becomes 'Silly Spending'- when the desire of buying something overrides the logical reasoning for not purchasing it.

Silly Spending.

For my 21st Birthday last year I purchased something I had wanted for a few years prior but couldn't justify its purchase. I have this mental wish list called the 'one day I will have...' and it was right up there along with a Segway scooter & a date with Christina Millian, only this was much more realistic (and more necessary to me at the time).

So.... what was this luxury gift I had been hungry for? A new car maybe? A 3D TV perhaps to takeover my whole box room? Or even a very nice holiday away?... 

None of the above I'm afraid. What I wanted was so much more attractive to me at the time...

                                              

- I got myself a Gucci belt.

So the time had arrived. I was en route to West End to get my baby. For the half hour or so that I was in the Flagship store on Old Bond Street store I pretended I was the same as the other customers in the store. A luxury purchase was just chicken change to me and not something that would actually dent my pockets. Trying on jackets that I knew I couldn't afford and having the sales assistant point out matching shoes that I knew I couldn't buy was just part of me lying to myself & trying to condition my mind into believing this purchase wasn't a silly one. 

Having known which one I'd wanted for years, me trying on a few different options was pointless but as the saying goes "when in Rome, do as the Romans do".

As I parted ways with £200 of my hard-earned cash at the till, I felt a piece of me tear away. No this wasn't the money being plucked from my pocket, this was a bit of rational thinking breaking loose but I still proceeded and paid for my new belt. 

Immediately after I left the store I felt nothing. 

"Is this it?"

I asked myself. All those years of wanting it and now the feeling of owning a Gucci belt had left me feeling no better than when I had entered the store. If anything, I felt worse considering I was £200 down. I had planned to feel spicier than a 5'5 Blackanese babe in denim shorts, eating an extra spicy 1/4 chicken at Nando's. Instead, what I felt was lemon & herb at best. Of course I did what a lot of us would do in that situation. No not march back in the store and return it- I found a way of justification.

Justifying Spending. 

"You're only 21 once. You've earned a treat. It's a quality piece that will last you for years." 

These were the words I told myself. I even called my good friend for them to reinforce my reasoning. Having just purchased an even more expensive gift for them self, I thought they'd be the ideal person to reassure me that I hadn't lost the plot. This they did and did well. It was like I was seeking their approval for my spending and by them agreeing with the above reasons was like them signing off my expense and making it acceptable.

Now I know I am not the only one who does this. There are times when you've bought or are thinking about buying something and for some reason or not you can't entirely explain why you should get it. Nine times out of ten its because its too expensive or just isn't that necessary so we come up with ways to explain the thinking behind it. I have a good friend who says:

"If you couldn't afford to pay for it twice, you shouldn't buy it once." 

I think its a bit extreme & not entirely accurate but I see the logic behind it. Whatever the case, you shouldn't have to present an argument as to why you should buy something even if you're pitching that argument to yourself. If in doubt, leave it out which is why the same belt in question ended up on Ebay a few months later. Granted I lost about £50 on it, but at least I had recovered £150 to be more wisely spent.

Spending within your means/avoiding Silly Spending.

I'll stress again, there's nothing wrong with spending- as long as you can afford to.

Scenario 1: You're a student. You eat value bread and top it with 33% ham. Ribena or dilute squash is a luxury. Yet with all this being the case you 'need' a new outfit for the coach rave you had to borrow money to buy tickets for.

Is this life?

Scenario 2: You've just bought a nice new car and everyone loves it but of course it doesn't pay for itself. Realising that on the rare occasion you actually receive petrol money from your new found friends who  now always have "motives" for you, it will never be substantial. Having a car shouldn't become a trade-off between petrol money and having enough to buy food to eat. It could seem as if the car is driving you if you can't seriously provide the means to look after both it and yourself to a decent level.

You should never be unable to provide financial support for your loved ones just because you spent that money on a silly purchase:

Scenario 3: Your mum's in a bit of a tight spot and you'd love to help but you 'need' a new designer jacket. 

Last time I checked, you could get decent jackets without breaking the bank so that response would be pretty weak but I do understand, it happens. 

Notice how I put the word "need" in inverted commas? That's because too often we confuse needs with wants and start to believe that by spending on certain things we'll actually be able to satisfy a need. The problem with this though is that with every need satisfied, a new one replaces it- especially when these needs have been manufactured. Remember:

 "If you don't learn to appreciate what you currently have, you'll forever be lacking."

Spending vs Saving.

Having disposable income is a must. Its great to have money put aside so you can spend on whatever you feel like. If you've already worked out your outgoings and put some money away then by all means spend without having to clench you bum cheeks & hold your stomach at the till. Just ask yourself this:

"Would the money I'm spending on this be better off saved or invested elsewhere?"

Purchasing something that adds no value (sentimental, personal or economical) is just plain foolish. Yes ladies you can buy yourself new UGG boots, but how great will they look if you can't even afford to replace your ripped leggings or body lotion for those ashy knees?

Guys-being head to toe in Louis V may be cool but not when I see you in McDonald's using your student discount to get a free cheeseburger. If you can afford to look the best then you should be able to afford to eat the best too.

There's nothing bad about Living, just make sure you remember to Maintain also. 

'Stunting' is the third 'S' & the last instalment of the 'Live & Maintain' topic which will be focused on next week so stay blessed & keep posted.

Mr. Adz