MadameNoire
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Information from the Bureau of Labor Statistics shows that Americans spend on average about $5,000 on apparel and entertainment each year. Maybe you spend more than that. Maybe you spend a little less. If you fall in the $5,000 a year range though, that’s almost as much as you’re allowed to contribute to a Roth IRA each year. Unless you’re a baby, you probably no longer change in size so rapidly that you need to buy a lot of clothes. Maybe clothes aren’t your issue. Maybe it’s electronics or designer shoes or jewelry. We all get that little surge of excitement when we treat ourselves to something. But, after that can come guilt, knowing we failed at impulse control. Maybe after that we find ourselves stressed when the number on the credit card bill is larger than the number in our bank account.
We often spend to potentially achieve happiness, but studies have actually found that the acquisition of stuff is not what makes us happy. In fact, the opposite is what makes us happy. Giving up more money in exchange for having more free time (like a lower paying but less intense job) makes us happy, as does spending money for the betterment of others. Neither of those involves treating yourself to a new smartphone accessory or more clothes. But, none of this information is very useful when that shiny object is right in front of you. That’s when you need something more immediate and practical to consider. With that in mind, here are questions to ask yourself before making a big purchase.
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Are you copying someone who makes more?
Sometimes we participate in the spending habits of our friends without even realizing it. Subconscious peer pressure can be a real factor. We tend to go along with the group. It’s true of the way we eat – studies have found that obesity spreads throughout friend groups – and it’s true of the way we shop. But have you stopped to compare the income, budgets, and lifestyle you have to that of your friend who is buying the fancy bag? Sometimes we can forget that we can’t afford to spend money the way our friends do. We get caught up in the moment and say yes to their suggestions to go shoe shopping or order more appetizers without thinking, “Well, this doesn’t harm their budget as much as it harms mine.”
