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.
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.