How to get rid of guilt when spending money

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

There is no shame in sometimes buying something just for fun.

You've probably heard the advice to give up takeaway coffee or a new pair of shoes in order to quickly save up for a large purchase. If only it were that simple! Unfortunately, giving up small expenses will hardly bring you closer to a new apartment or early retirement. But constant restrictions increase stress. And when you deny yourself everything, it's easy to break loose and buy something unnecessary under the influence of emotions.

And it’s unlikely that takeaway coffee is the cause of your financial problems. Rather, they are to blame for the lack of a clear budget and good financial habits. But it is quite possible to fix it.

1. Make a financial plan and stick to it

Perhaps you feel that the money spent on yourself could go to something more important. Of course, you will feel guilty if, after the purchase, you are not sure whether you will have to save on food next month. In this case, financial planning will help.

Try to budget on a 50/30/20 basis. According to him, 50% of income is spent on mandatory payments and needs, 30% on entertainment and 20% on helping oneself in the future (savings for some purpose, creating a reserve fund, investments). Naturally, you can tailor this to suit your conditions. If your city has very expensive housing, distribute income according to the 60/20/20 scheme. If you want to pay off debt faster or save up for vacation, increase the amount in the third category.

When you know exactly how much is spent on basic needs and savings, you can safely spend the rest on yourself.

Now, instead of repeating, "I have to be more responsible with money," you can say to yourself: "I took care of my accounts and goals and I can please myself with something because I earned this right."

Do not scold yourself if you deviated from the plan and spent too much on pleasure. Just adjust your budget for next month by cutting spending in the appropriate category. After all, for this you need a plan - to help yourself control spending.

2. Change your attitude towards the budget

It seems to many that the budget does not allow spending money at all. In fact, he does not limit, but liberates. With it, you take care of yourself. By calculating in advance how much you need for basic needs and long-term financial goals, you can safely spend the rest on entertainment or self-development.

You worked hard to earn this money, so why not spend it on yourself? You deserve this dinner at a restaurant, or a trip with friends, or a new thing. You don't have to blame yourself for a spontaneous purchase, because it is included in the budget.

3. Spend only free money

If you need to take a loan or pay with a credit card for a purchase, refuse it. If you want to get into the reserve fund, also refuse. A reserve fund is needed for emergencies like illness or job loss.

If you are not borrowing and ignoring your financial goals, and you still have guilt, it may be the purchase itself. Keep track of what you buy for a couple of weeks. Write down every spend in a notebook and evaluate how valuable this purchase is to you. If something does not bring joy and benefit, but you buy it out of habit, stop doing it.

4. Find a little more money for yourself

• Trim one expense category to cover something else. For example, you want to go to the gym, but you don't have a free membership fee. Try giving up something else, like eating out at a cafe or going to the movies.
• Sell unnecessary items. You probably have appliances, clothing, books or furniture in good condition that you no longer use. Get rid of the unnecessary and help out some money for something pleasant for yourself.
• Stay tuned for discounts and sales, check out sites with used items. It is not at all necessary to buy the thing you dream of at full price.