Spend with a plan
People write every day about budgeting, debt reduction, saving, and investing, and those are all great topics. But today I’m going to talk about spending money. We all spend money every day — it’s as normal for most of us as breathing. We don’t even think about it most of the time, unless we find ourselves short of change for the vending machine or toll booth. If we’re short of money to pay our bills, we tend to think instead about how we can avoid spending money. I think that sometimes we’ve got the focus wrong.
When you spend money, spend with a plan. What do you value? What do you want most? What’s worth it to you? Me, I value trips to places I’ve never been. I love exploring new places. Love love love it. It’s really important to me, and that’s why I’m going to spend a large amount this year on traveling. I don’t do that every year, but I’m also not going to deny myself a trip that I’ve wanted to go on and saved for just because it might seem extravagant. I’m spending with a plan — a plan that’s in line with my values.
By default, planning what you do want to spend money on can help you to decide what you don’t want to spend money on. Make a list of the things that you want in your life. First broadly, and then more specifically. A sample list might look like this:
1. Kids – x number of kids, money for college
2. A comfortable house – a down payment, money for upkeep & improvements
3. Time to relax – free hours each day, hobbies
4. Travel – two or three short trips per year, one larger trip per year
5. An enjoyable job – fulfilling work without a lot of stress, a means of transportation to get you there
Once you can see what you want most, you’ll be able to see how much they’re likely to cost, and begin planning (and spending) accordingly. If you focus on what you want and keep your spending in line with your dreams, you’ll get there.
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