Consider What You Gain Before Spending Your Hard Earned Money

by Miranda Marquit · 11 comments

Part of good financial management is making decisions based on your priorities, and understanding how a purchase or a spending decision will benefit your life.

Before you spend money on a product, service or experience, it’s a good idea to consider what you will gain by making the spending decision. Spending money can be a positive experience when done with focus on what you can gain as a result of your spending decision. Here are a few things to consider:

Is It Something Your Family Values?

First of all, you need to decide if it is something your family values. Do you enjoy making memories on vacation? Do you spend time playing video games together? What do you enjoy doing together? If the purchase will help you spend more time doing what you like to do together, it is probably worth the expenditure. Make sure that the purchase is in line with your personal and family values for best results.

Will You Gain More Time?

Another consideration is whether or not it will truly free up time for you to spend doing things you actually enjoy. In some cases, hiring someone to clean, or take care of your yard, or even prepare a few frozen meals for you can be worth the money spent. If you are able to spend more time with your family, or if you will have more time for the things you really enjoy, it can be worth it to pay someone else to take care of the task.

Can It Improve Your Health?

Sometimes, spending money now can help improve your health in the long run. Spending a little more on fresh produce can help your long-term health. You can also see a difference over time by investing in a good pair of running shoes, or other equipment that can help you exercise more. Spending more to stay healthy can be valuable — as long as it truly increases your health.

Will It Improve Your Quality of Life?

Decide whether or not your purchase will make you happy, and improve your quality of life. If you spend a lot of time grilling outdoors, it might be worth it to buy a better grill, and build a new patio. Some people enjoy the comforts of a nice home, while others want to travel the world. Think about what’s important to you, and what you think will truly make your life better.

Better Living

The key is to think about whether or not an expenditure will actually help you with better living. Can you see how spending the money will truly improve your life? Will you be able to spend more time with family, or advance your goals and priorities? Be honest in your assessment. If you really won’t be gaining much by spending the money (and especially if you really end up losing), you should consider holding off.

Before you spend money, think about the impact it will have on your life. Consider whether or not you can use the money for something else — something that will actually benefit you more.

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  • Lynne says:

    My favorite question to ask myself is based on an old toast, “May you have what you want, but more importantly, WANT WHAT YOU HAVE!” It helps put everything, including spending in perspective. Cheers!

  • Marbella says:

    Time is money, but the more you spend the more you have to work, try to reverse it and reduce your dependence on gadgets and other new products, buy used or waive the need completely. You will feel better and have more time for your family and friends.

  • We just finished having our carpet replaced with tile and laminate. I spent a couple of years investigating different kinds and trying to decide whether to go with carpet or laminate. When I thought about having to replace carpet again in 10-12 years, that made my decision. Now that it’s done, I’m glad I chose to go without carpet.

  • Shane says:

    Tips and things like this are important for people to know especially during a recession. People are not used to having to budget so strictly.

  • These are all great things to think about. I’ve found that creating a zero-sum budget forces you to think about all of these things ahead of time. That way you know where every penny of your money is going each month before you are even tempted to spend it.

  • James says:

    When it comes to my kids, I don’t mind spending money. I buy them almost everything they want that my money can afford. But when it comes to myself, that’s a different story. As long as something is usable, I don’t need a new one.

  • I generally try to think of how long it’ll take me to buy a larger purchase in terms how many days I’d have to work. It puts things into perspective and makes me realize if it is worth it to me or not.

  • Jean says:

    This really strikes a chord with me as I am extremely analytical before any sort of purchase and not just for major purchases. Sometimes, I get criticized for it but I guess I just enjoy it too, trying to outsmart all the companies that try to shove useless and excessive products to us customers that we really don’t need.

    -Jean

  • Bryan says:

    These are all great questions to ask. I’d maybe add on that too much in the way of positive purchases in life can become detrimental over time. For example, I tend to consider buying and reading books as a means of enriching my life. However, if my library were to grow to be too big, for example, I’d actually be lessening my life experience as the pleasure of reading would be eclipsed by the unpleasantness of not having room to live in my condo.

  • Good post. I like to think about my spending in terms of hours at work. Is such and such item or purchase worth 2 hours at work? It helps me stay on track and not waste money.

  • I should definitely do this exercise when I go and buy lunch at work. There’s usually no reason for me to do that, and it ends up being expensive.

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