The more money you have, the more ways you’ll find to spend it all. To get a handle on your impulsive spending, divide your potential purchases into two categories: likes and loves, then toss out the former.
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As personal finance blog The Smile Lifestyle explains, spending money on things you only like is a quick way to pour money down the drain for very little benefit. Doing something you only like makes you a little happier for a moment, but it actively takes away from things you could be doing that you’ll really love. By definition, it’s not worth the trade off:
Take a step back and ask yourself, “how many purchases have you made that you only liked and didn’t really love?” Quite a few? You’re not alone. Imagine all my $40 dinners I had in span of a 30 days. That’s $1200 enough for an all inclusive trip to the Dominican Republic for two people. I would complain I didn’t have the money to go on vacation but I was continuing to buy things I liked over what I said I loved…travelling.
Sometimes, doing what you like can be a treat that you need (like eating out at the end of a hard week). However, you probably know what it is you love and what will make you happy long term. If you find that you’re never able to afford the things you love, take a look at how much money you’re spending on things you like.
Your Money Mindset: Are You Unconsciously Spending on Likes Not Loves? [The Smile Lifestyle via Rockstar Finance]