“Too many people spend money they haven’t earned, to buy things they don’t want, to impress people they don’t like.” —Will Rogers
The average American home size has doubled in the past 50 years. Still 10% of households rent offsite storage and 25% of homeowners with two-car garages can’t park cars in them. 76% of Americans live paycheck-to-paycheck. And the average US household credit card debt stands at $15,191.
It appears we have a spending problem. We buy far more than we need.
And yet, our filled closets, overflowing drawers, and crammed basements stand as proof that purchases are not improving our lives. Our discontent is evidenced in our excess. (tweet that)
In every imaginable category (from homes and cars to clothing and technology), we must find greater intentionality in our consumer pursuits.
To accomplish this, I propose we start asking ourselves some very specific questions before making any purchase.
3 Questions to Ask Before Any Purchase (by category)
Clothing/Apparel:
1. Am I replacing an item of clothing or buying something new? If the item is not a specific replacement, rethink your need for it.
2. Is this something I will wear regularly? If you can’t see yourself wearing the item on a regular basis, rethink the purchase.
3. Is the style one that will last? Don’t believe all the hype of the latest trends, they are manufactured by the fashion industry and change quickly.
Technology:
1. What problem does this solve? Technology should make our lives easier by solving problems. If a new technology is not solving an existing problem, it is only adding to them.
2. Are there any rumors of new advancements to this technology? Technology is changing rapidly. If your purchase is not time sensitive, it may be wise to double-check if a new release is right around the corner.
3. Is this technology I can afford? Keep in mind the full cost is often far greater than the initial investment.
Furniture/Decor:
1. Is my purchase based on a genuine need or a cultural pressure? Am I succumbing to a specific pressure brought on by cultural, peer, or family pressure? Or is the furniture/decor something I truly need?
2. Am I choosing quality over quantity? With furniture, choose quality over quantity. One comfortable place to sit is far better than three uncomfortable options. And one beautiful piece of art decor will provide more life than a dozen cheap ones.
3. Is this style one that will last?
Entertainment:
1. Will this entertainment choice result in rest and value? Entertainment moves our emotion, occupies our heart, and exercises our mind. Or at least, it should. Choose to invest your entertainment dollars in places that will.
2. Am I overusing entertainment to escape my life? There is nothing wrong with enjoying entertainment. It serves an important purpose. However, it can become a personal and financial burden if we use it as a means to routinely escape our own reality rather than face it.
3. Is there a cheaper alternative? A walk in the park or a hike up a mountain is often more entertaining and beneficial than buying another movie ticket.
Food:
1. Will this food add fuel to my life? Unhealthy foods may taste better in the moment, but in the long-run, they detract from our well-being and lifestyle.
2. Are my food decisions contributing to my financial stress? According to statistics, Americans spend 42% of their total food bill eating out. If you are unable to get ahead financially, this is one easy place to start cutting back.
3. Who am I supporting with this purchase? You need to eat. Support your local economy while you do.
Personal Insurance/Health:
1. If purchased personally, have I discussed my options with a health insurance professional? Find professional help with this decision. It is their job to understand all your options (and they are changing quickly).
2. Have I researched the benefits of my existing plan? Am I getting the absolute most out of my current payments? Search dental, vision, and preventive care.
3. Am I pursuing a health-benefiting lifestyle? The most effective way to keep your health care costs at a minimum is to pursue a healthy lifestyle. Accidents and heritage happen, but healthy habits always pay for themselves in the long run.
Transportation:
1. Do I need a new vehicle? If not, why do I want a new vehicle? And is that a good enough reason to spend the resources?
2. How much cash + trade-in have I saved? Always, always buy your vehicles with cash. You won’t regret it.
3. What are the additional expenses associated with this purchase? Calculate insurance, gasoline, anticipated maintenance, and unique circumstances (parking, tolls). Factor these into your decision by comparing several models. Sometimes a vehicle may cost more upfront, but save money in the long run.
Housing:
1. Am I buying/renting only what I need? Choose shelter based on your needs, not what the realtor says you can afford.
2. What will be the additional expenses included in this purchase? Whenever possible, research the utility costs, insurance, taxes, expected maintenance, and HOA fees of your new purchase—especially if you are transitioning from a rental.
3. Will this arrangement bring freedom or burden into my life? Your home should bring you security and stability—not stress. Wisely consider also the impact of potential economic downturns on your home value and ability to make future payments.
Pets:
1. Is this a pet I can afford? Consider all costs associated with your pet: feeding, licensing, housing, cleaning, grooming, pet-sitters, and medical expenses.
2. “Will this animal or pet keep me from pursuing other important goals like travel, hosting others in my home, or financial independence?”
3. Will the benefits an animal brings to my life outweigh the extra work and expenses? Am I able to articulate the exact reason why I am taking on this responsibility?
I am very open to this being a fluid list. Are there any spending categories you would like me to add? Or do you have any specific questions for the categories above you have found particularly helpful? Let us know in the comment section below.
William Watkins says
Josh,
Great post,
I would add one category of Finances/Financial Products
For instance is the reward/loyalty card enabling or detracting from what I want to do with my life.
Similar with how one pays off debt or takes out a loan. You wouldn’t want a 50 year mortgage if you plan on retiring early.
Also Investing, do you invest in companies that fit with your values and are your investments giving you what you need. (Growth, income security, foundation for wealth)
Though it is an awesome post.
Thanks,
William
Mendo says
The best advice I got about buying things has saved me so much money & my own philosophy.
Advice I got – before you buy ask yourself. ‘What is this going to do for me?’ That’s a huge question that stops impulse buys.
My philosophy.
Don’t go shipping unless you need some something. There is always going to be something you like in the stores, so don’t go. This has saved me thousands of dollars a year for over a decade. However, you will always seem to end up in stores. When I get tempted I refer to the advice I got above & also ask myself. ‘Is this on my list of things that I need?’ If it isn’t something that I had previously realised I needed, I don’t buy it. Otherwise you will stand near the product & talk your way into reasons why you need it. So if didn’t need it till you saw it…Watch out…
Feel free to share.
It has saved me thousands of dollars a year & stopped my impulse buying.
Amy says
For pet lovers – consider pet insurance – a beloved pet requiring surgeries or expensive medications can create heartbreaking situations.
Patty says
Pet insurance does not work the same as people insurance. There are many things that it will not covered, and once an animal develops a condition, it becomes a pre-existing condition and is not covered in following years. Every year is a brand new renewal with a brand new assessment of what is a pre-existing condition. I consider my dog’s insurance a complete waste of money.
Mandy Tirado says
I did not know this about pet insurance and was considering purchasing it. You just saved me some money! Thank you! :-)
Catherine says
For furniture/decor purchases, I always ask myself if I really want to spend the time to look after/dust/maintain the item. Also, I try to imagine where it will actually live in my house. Often, just trying to imagine a spot for it and thinking about dusting something is enough to make me leave it there.
Avalon says
I really enjoyed this post. I’m from the UK and I wonder if our stats are similar to those you stated. As someone in their early twenties it is quite easy to be sucked into the habit of buying for buying sake, especially with clothing, but looking at things mindfully like the ways in which you’ve outlined certainly helps!
Tiffany says
I spend a significant amount of money on skincare, makeup, hair, massage, pedicures, facials, etc
If there are questions to be more intentional about those types of purchases I’d love to hear them!
Wanda says
Avon products are 100% satisfaction guaranteed. Don’t like that lipstick color on you? You can return it. Never waste money again. http://www.youravon.com/wgilbert
Jillydc says
I have stopped reading the makeup and skincare sections of magazines. They cause me to want to buy more (which is of course their purpose!)
Judy says
I dye my own hair and I paint my own nails. I have also gotten back to basics with skin care and use simple products such as Noxzema and witch-hazel…things like that. You’d be surprised at how well these trusted and true products work! :) Also I save tons of money. Save your money on expensive products and place a big smile on your face. It’s THE best beauty secret!
Krista says
I am 53 years old and get complimented often on my “peaches and cream” complexion. When women (and men!) ask me how I keep my skin looking so nice, I tell them that a large part is due to genetics. My 75-year-old mother has beautiful skin. As far as a skin-care regimen, I do very little. I remove my make-up every day with Pond’s cold cream and those packaged moistened towelettes. The store brands work just as well as the name brands. And that’s it. No moisturizers, serums, etc. I use a light moisturizer with sunscreen in the morning when I apply my makeup. I wash my face with the same inexpensive liquid soap I use on the rest of my body. My mother has never used expensive products or skin-care regimen either.
If you want to keep things super simple (including at-home facials, hair treatments, manicures, pedicures, etc), I recommend using coconut oil for MANY things. Here are some of the many ways it can be used: http://www.swansonvitamins.com/blog/natural-health-tips/using-coconut-oil
Also, I dye my own hair. I am completely gray now, but hardly anyone knows that. I keep my younger color (reddish golden brown) by using a custom-blended formula from esalon.com. I highly recommend them. Be sure to check out their website. Their product is way better than what you can buy in a drugstore, and not much more expensive.
Heather Joy says
I’m not sure if you would be willing to go this far, but I am 21 and I have never painted my nails, never gotten my hair professionally cute (I trim it myself), and have never worn makeup. I use Johnson and Johnson baby shampoo for my hair, and a bar of Castile soap for my body and face. I am very happy with the way I look, I don’t feel dowdy at all. I get a lot of complements on my clear skin, and shiny hair, so it’s not like anyone else notices that I am not spending an arm and a leg for beauty products. :)
I once got into a spending spree where I bought just about every single type of hair product out there. I had everything a girl would ever want, and then some. But none of it was “working” to make my hair more shinny, or what have you. In fact, some of it was making it look worse than before I started! So I slowly got rid of it all, and now my hair is back to being happy and shinny, and I have my closet space back! ;)
Fasih says
Three thumbs up for you, Heather. By not contaminating your skin with toxins, you will look fresh for as long as you live, I hope and pray. The greatest gift anyone can have is to feel lovely as one is, rather than after hours of painting up and then look worse. Can’t imagine this has been going on since whenever and so few having realised its utter futility. My wife is close to 40 and never wears make-up. Once she did, for her brother’s wedding. I still get nightmares!
Mandy Tirado says
I use castile soap and baking soda for everything, and rinse my hair in a mixture of apple cider vinegar and water. I’ve not yet cut out make-up entirely, but I’m playing with the idea of making my own and never buying it again. I love make-up, as it makes me feel beautiful and confident, but I completely respect those who choose not to wear it!
Kerry says
Tiffany, you probably don’t need any of that. It seems radical at first but if you start small reducing your beauty regime is very doable. Giving up manicures is easy. You can paint your nails at home. Facials are for your birthday. Gradually stop dying your hair and let the odd gray hair be sexy rather than embarrassing. Simplify your cleansing regime. Pare down on your everyday make up so that full-face is only for special occasions.
I wear no make up, no hair product, and rarely go to the salon. Some people find this incomprehensible because their routine is so different. I love the freedom of getting ready in 15 minutes. I don’t look like a movie star, but I’m not hard to look at lol! And above all, it doesn’t clutter my mind, my day, my cupboard, or my life.
Sarah M says
I loved this post so much…so much wisdom here. I shared this on twitter and facebook just so my friends could read it, too. I would add that a good rule of thumb for housing is 25% of take-home pay. My husband and I have lived all over, in many housing situations, and when we commit to that 25% take home or less for the monthly price of mortgage or rent, it always gives us plenty of cushion. We were at nearly 40% one time and that was just insane.
Sarah M
Karen T. says
My husband and I were also spending about 40% for housing a couple of years ago, and now are happily living in an apartment that takes about 20% of our net income. What a HUGE relief! We though we’d miss the house, but no. . . we have room in our budget for giving to others, for savings, for fun and travel. We’ve paid off all of our other bills. We have time every weekend (instead of being slaves to the house and yard). Perfect decision for us.
Amanda says
Getting below 25% must be so nice!! The area where I am living in has a very very low vacancy rate which drives the cost of rentals up as well as limits the availability of affordable ones. My rent is nearly 50% of my take home and there were very few options below that price point. For 15% less a month I could have gotten a basement studio with street parking so the little bit extra cost is nice to have a bedroom and garage.
Jess says
That is a good rule of thumb. However, some things like geographic area need to be considered. I live in the Chicago area. We have to think of things like tolls, public transportation, crime, and access to things like parks and forest preserves. We used to budget $50 a month just in tolls. Not to mention places are just expensive here. When we moved we choose to pay a little more than that, but I think we made a good decision. We pay less in gas because we are close to the train and work, we have access to nice parks and forests preserves, we don’t have to worry (as much) about crime in our area and my child with special needs goes to a better school. Sometimes the trade offs outweigh the rule of thumb.
Jasmin says
I’m a designer and I feel good about my progress in all areas but I’m conflicted when it comes to my studio. I’m great at up cycling and I use a number of mediums, which results in lots of ‘stuff’. In the past when I have thrown things away I have often times regretted it, having to buy new materials or tools. How do I lighten my studio without sacrificing things that are useful for the things I make? Is there any rules or advice for that? Should I allow this one area to be an exception?
quiltdivajulie says
I am a quilt maker and collector – yes, studios do come with a lot of stuff. I confess to having brought home a great deal early on, but now I do stop and ask myself whether I NEED the “—–” or WANT it because of seductive advertising. Generally I put the “—–” back and walk away. I have donated much of the excess I no longer need . . . so I think the answer is to consider each item on its own merits. Does it bring me joy? Does it now or is it likely to fill a need? What is the tradeoff between storing it just in case vs. the possibility of someday needing to purchase a replacement. No easy answers!
Rachael B says
I, too, am an artist. A recent graduate from a BFA program – while in school I had way way way too much stuff in my studios. The materials and techniques that I was using up until recently were frenetic, all over the place. Having a lot of stuff to choose from can be really great, your stuff can inspire your choices in unexpected ways.
However! Slimmer parameters can be a multi-faceted boon. I have looked and looked for inspiration on this topic, so I am glad to offer hard earned wisdom. You use what is available. Having fewer things available can require a more attuned use of creativity – i.e. makin’ it work with that art brain. You might even be able to get a clearer vision of what you want if you can actually find the things that you do have. As another poster said before me, don’t fall for new art products unless it really makes sense. Upcycling is really a struggle, re: minimalism, but avoiding the art and craft and hardware and thrift stores will help. At emotionally difficult times I have found that I was looking for stuff to buy more than I was using the stuff I had – scary! Decide on some parameters and stick to your guns. Those parameters INDUCE creativity! Let yourself thrive within a structure of your own design.
Right now I’m using my studio space as a $175/mo filter to get rid of the stuff that I have been hoarding in order to work within my parameters. I’m sitting at my minimalized workspace now and it is AWESOME how productive I can be when not having to stack things off of my desk to get at the computer. And I mean really productive, this post has been a helpful break from sorting through drawings.
Pamela says
Can you include pets? Animal lovers often don’t take into account what it costs to care for an animal, financially and otherwise, like if you need to go out of town and can’t take your pet, or are moving, there may be a fee that needs to be calculated.
joshua becker says
That’s a good one Pamela. And one I’d love to include.
Unfortunately, I am not a pet owner and would hate to speak out of ignorance. Perhaps we can work it through here in the comment section and add it to the article above.
Pet owners—what questions have you found helpful in adding intentionality in your decisions? Whether to purchase or care for a pet?
Amanda says
I have to be very careful to balance my own nurturing desires with the practical needs of my life.
Questions to ask, especially for one seeking to minimize or simplify their life:
“Can I truly afford the consistent care and upkeep of another animal/pet?”
“Will this animal or pet keep me from pursuing important goals like travel, hosting others in my home, or financial independence?” (Consider whether or not it will be easy to board, or get pet sitters. Consider whether or not your pet will be welcome to travel with you to friends and families houses. Consider if you are willing and able to train your pet in proper house manners and behavior if hosting others in your home is a priority…which it is for us.)
“If I am adding a pet to a household that has one already, is it worth the work and stress if my new pet does not get along with my previous one?”
“Is there room for a new animal in my home, in my schedule, and in my vehicle? Am I willing to make room, or will it be an extra expense and/or stress that isn’t needed?”
“Do I want the extra work of cleaning, walking and caring for another animal? Will the benefits an animal brings to my life outweigh the extra work and expenses?”
We have one dog, and have considered getting another. However, we travel cross country to see family, we don’t want to have to purchase larger vehicles to hold several dogs AND kids when we have them, we don’t like to pay for boarding, and we worry that no other dog could possibly be a chill and well-behaved as our current mutt. We constantly host church functions and friends in our home and don’t want too many animals to cause chaos or to end up with an animal who cannot handle the constant activity and people. (It wouldn’t be fair to the animal or to our guests) Its also harder to get pet sitters for two dogs, vs our one super chill dog right now :)
For all of these reasons, we have not yet taken the plunge. And I am an animal lover to the core :)
joshua becker says
These are great Amanda. I have incorporated some of them into the post above.
Michele says
Also, if you get a dog that needs grooming every 8 to 12 weeks, like a poodle, you need to prepare the spend at least $45 for each visit plus a tip. I thought that I could do it myself, but I was wrong. I do not think that I am alone.
Also, think about fleas and allergies that you may not know that you and/or your family may have. Even hypoallergenic dog breeds can bring in lots of pollen from outside. Just imagine how much pollen a Portuguese Water Dog could bring in.
Helen Fagan says
As a person who suffers from PTSD and Severe Clinical Depression, a pet was recommended to me as a good addition to my therapy and medication. I believe, while the points you make are excellent and valid, one must consider them through a health lens as well.
Stef carter says
Pets: Are you ready for a 10 year commitment regardless of future moves, babies, allergies and divorce?
Carole Coates says
After forty years of living with animals,we are now a pet-free household. There are pros and cons to both lifestyles. Without pets we save money, we can travel freely (especially now that we’ve retired), cleaning is easier. Pets, however, can be great stress-reducers, bring great joy, can give even more meaning to life, and (if they are dogs) force us to get outside and get more exercise. However, we just came home from a weekend with a family with seven well-loved and cared-for animals and we saw just how much time, money, and decisions are governed by that choice. Will we ever have another animal? I honestly don’t know. Right now we’re enjoying the new found flexibility, but that may change once the newness wears off.
Erin says
Interesting, discussion on pets. I think that our pet has helped our lifestyle become more simplistic. She is like one of the children and there is no question about having her or not but we do ask some of the same questions we ask ourselves when buying something for her. Does she really need the treat, the new collar with her name on it, an expensive dish? No used to get all of those things but our new budget conscious reality she doesn’t. However, she gets more walks than she ever did, our entertainment is more centred around her hikes and swimming in the lake. My daughters are learning to care for and take responsibility for a dependant. If the key is if you can think about a pet as a member of the family rather than a purchase or something you own.
Rebecca says
I love this addition. Pets, though beloved, can be as compulsive, emotional, and impacting an acquisition as other things. We’ve wavered too, and have opted at this time to foster pets for a rescue—the commitment is short-term, we get the pleasure and companionship, the pets benefit from love and training, and the expenses are covered by the rescue.
Jaq Sampson says
Unfortunately another thing that tends to attract me to buying a pet or taking one on is would it die without my care and it’s sad but some would (kittens found in a plastic bag on the side of the road in the rain etc) :( this tends to make me stretch my budget but a life is a life no matter how matted or cute it is & I care for them all even if I eat soup for weeks on end…
tashanicole says
I love this one… “Will this animal or pet keep me from pursuing other important goals like travel, hosting others in my home, or financial independence?”….. For me personally, I wished I would have considered this better before buying our two dogs.
nicole 86 says
Usually my first question is : can I do without ?
Usually my answer is : no ….. except for books (those wich I do not find at the library)
Your questions are much more precise and accurate, I may think about using somme of them.
nicole from France