Think Before You Swipe

We’ve talked a lot about budgeting, and how to manage your money by seeing the big picture. But what about the daily aspects of your finances? How does that work? Especially from the perspective of a “spender” – a person whose nature is to spend first, think later.

This is my mindset and it has been my biggest struggle with overcoming financial challenges with my husband. For me, money is an emotional decision, not a logical decision. Money has a lot of significance for me because I was raised by a single mom on a teacher’s salary and a dad who ran his own small business. So I didn’t have a lot of financial freedoms when I was growing up. When I got my first job, I had the “freedom” to spend money, how I wanted to, on what I wanted.

This only lead me down a path of unhealthy spending habits for later in life. When I got my first apartment, at the end of every month I found myself broke, with no money left to buy groceries or fill up my gas tank. Why? Because I didn’t have a budget and I was spending money based on emotions rather than logic. I didn’t balance the difference between my wants and my needs. I thought because I wanted something, I needed it. If I’m being honest, I still struggle with this attitude regularly. But I know the signs to watch for now, and the questions to ask myself BEFORE I make a decision on a purchase, big or small. I take a few minutes to think BEFORE I swipe that shiny little card that makes me feel good.

 

First, let’s look at the difference between a want and a need.

 

A need is something you cannot survive without. A fancy new purse? Not a need. Food, water, and shelter? Those are. Very basic needs, but still a need. A want, on the other hand, is something that you can live without. Most of my purchases tend to fall into this category.

 

 

Here is a perfect example: for Christmas this year, I got a stainless steel 32oz water bottle.

 

It came with a wide-mouth lid, that you have to twist off to drink from it. I HATE wide-mouth lids. I am basically like a small child, and cannot drink from them or I will spill all over myself if I’m not careful. So, I asked for a different lid. One with a straw instead, so I can suck down my water rather than pour it on myself. I tried to convince my husband that I needed it because I spill all the time. Or I don’t drink enough water, but if I had a straw lid, I would be able to drink more. Despite my best reasoning, though, it was a want, not a need. When I dropped my water bottle, for the thousandth time, and my wide-mouth lid cracked and broke, a new lid became a need. My water bottle was leaking and no longer functioned properly. So I bought my straw lid. 😀

 

Another way to look at this concept is to use this chart I made for myself. It helps me decide whether or not I actually need the item, or if I have just convinced myself that I do.

 

The biggest question I ask myself when deciding to make a purchase, even if it’s as simple as a new notebook or journal, is the 2nd to the last question on the chart – Do you want to maintain it? Meaning do I want to store it, do I have the space for it, do I already have one taking up space that will work just as well? These are all valid questions to consider, especially if you are a spender like me. Those with a saver’s mindset, you probably already think like this. But this is a great way for you to rewire your brain, to think about the financial choices you are making on a daily basis.