I was 17 when I got my first real paycheck. It was awesome. After I completed my indoctrination training for the Navy, I had a big fat balance sitting in my checking account and I was completely unprepared. For the next two hours I bought everything that I was deprived of because of my background.
CDs, DVDs, a DVD player, a dope haircut, and bought as much fast food as I could eat. It was awesome, however I had no clue what I was doing and didn’t know why I needed those things, albeit I definitely needed the haircut.
That money provided options that I never had prior, so like a glutton in a buffet, I just started consuming. In essence, I was spending money just to spend it. I didn’t have a true need or want so the emotional high I received was fleeting. This cycle of spending without a purpose continued for a long time until I was forced to stop when I became a surgical resident and had to learn to save every available cent.
You might be thinking you know how to spend, however I’d say most of us don’t.
In personal finance, spending is not something talked about in a good light. In fact it typically has a negative connotation associated with it.
I never paid attention to this until I listened to a Ramit Sethi podcast episode and he stated “everyone teaches how to save and no one teaches how to spend.”
And he’s 100% correct.
If you Google, “How to Spend,” you’ll find tons of articles explaining how to spend wisely. However these are how to save articles in disguise, not how to actually spend your money without concern for saving.
I’ll be the first to admit that personal finance done right, is sort of addicting. Like you can actually be addicted to saving. Hell, I’ve struggled with a saving addiction. As a result I learned to become irrationally fearful of spending. After listening to Ramit’s words and reading other Blogs, I realized spending tends to get a bad rap. I think its time we evolve our mindset.
Spending is not bad but OVERSPENDING or irrational spending is.
We need to understand, its okay to spend, if you’re on track to hit your financial goals.
Saving on that latte, avoiding avocado toast, buying cheap used cars, just to save money is ridiculous and I hate that its a theme in personal finance.
If you’re headed in the right direction and on track to meet the financial goal YOU SET, buy the latte, add avocado on your toast, and get the car you want. Life is too short to worry about how saving 50 cents will help speed up your retirement plan. We all work too hard not to enjoy our money. So while we are here, save, invest, protect, and SPEND your money effectively.
As always if you have questions or concerns regarding creating an emergency fund, investing, real estate, insurance, or planning for the future, don’t be afraid to speak with qualified financial advisor. Smart Asset has a great tool to find an advisor in your area or feel free to email me (contact@surgifi.com) to help you on your path to financial independence.
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Great post surgiFI!! As I start getting more and more candles on my birthday cake, and see a friend pass away from an illness, or a colleague die unexpectedly, I am focusing more and more on enjoying the present, as well as planning fastidiously for the future. Appreciate your blog and insights!