Don’t Spend Money That You Don’t Have
Does it make you happy when you spend money?
I think most of us do have a happy feeling when we shop. We feel happy when we get something that we really wanted. It is perfectly okay if you can afford it.
I don’t think getting ourselves into debt to support our spending is a wise decision; especially if what we have brought is something that we don’t need. It is silly to let emotion take over our common sense.
Everyone has brought things that they don’t need. Some people do it more often than others. Someone with financial wisdom will not do that.
Here are few examples of unwise spending decisions:-
- buying a new Gucci handbag just to impress your friends.
- getting expensive hairdos to make yourself feel good.
- updating your mobile phone or computer to the latest model every half year just to keep up with technology.
- renovating your bathroom when you see your neighbors have done it.
- buying some pretty figurines and decoration without real purpose.
And the list goes on….
We might feel happy for a couple of days but we will regret our decision later on when the feeling wears out over time; when we have to pay the debt and also the interest incurred in buying it. When you get a credit card shock when you received the statement from the bank.
Credit card debt is a very bad debt, unlike mortgage debt they have a very high-interest rate. Some bank charge up to 20% is not uncommon.
For me, I clear up the credit card balance every month and I don’t have to pay this ridiculous interest. It is a daylight robbery; how on earth they are allowed to do that?
So take my advice and don’t spend money that you don’t have. I will give you a few guidelines on how to make a good purchase decision.
When you want to buy something, ask yourselves these questions. If you answer NO to any of these questions, don’t buy.
- Is there a practical use for it?
Buying something to impress others are not practical use. Buying a bunch of flower for your girlfriend is practical, for it makes your relationship better. Perming your hair every month is not practical. There are many ways to make your hair look good without spending lots of money.
Don’t buy something which has no practical use even if it is very, very cheap. It is just a waste of money even if it cost you 50¢.
- Do you have the money?
If the item is food and necessities, then it will justify the purchase even if you don’t have the money. Other than that, you should not buy anything when you don’t have money.
Even if you have the money, it is better to keep the money in the bank than spending it. You need money for your retirement, money for the kids education and emergency crisis.
- You cannot make it yourself?
There are things that you can make yourself and you don’t have to buy it. For example, soft drinks. Soft drinks are only soda and sugar that we can really do without; not to mention that they are not good for our body.
You can make nice drinks at home for your kids, it will be much healthier with less sugar.
- Can you get it elsewhere for less?
I don’t think I have to teach you this, everyone knows. There are websites which teach people where and how to get more for less.
- Can you borrow it from people you know if you are going to use it once?
Some of the things we brought we only need to use it for one time. For example, you can rent tools from tools rental shops. You can rent dress and evening gowns.
When it comes to purchase decisions, you can make yourself a smarter shopper. Here are some advice for you.
- Get quality. It is better to pay more to get something of quality. The cheap stuff might breakdown easily and you wasted your money.
- Don’t totally rely on brand names. Branded items are more expensive than non-branded ones, they do the same job with same quality. Sometimes, branded items doesn’t necessarily better than non-branded ones.
- Go online to find reviews of the product you want to buy. With more information, you can make a better decision.
- Talk to your families, friends and colleagues to see if they have used the same product that you want to buy.
Don’t be a hoarder. Your house will be much tidier with less stuff. You will never use those stuff that you hoarded, they are just junks.
I saw on TV once, there was a lady who had a whole house full of junks (her treasure) and there was no room to move around. They had to help her to get rid of most of them so she could have a normal life.
There were questions they keep on asking her when they try to sort things out – what to keep and what to throw away. “Does this thing have sentimental value? Do you really need it?”
If you have more than what you need, it is better to give it away to someone who needs it.
Do you have any stories of hoarders? Please tell me your stories.