Comments on: Money isn’t money and things aren’t things – they’re experiences

By: Valerie M

Valerie M — Thu, 01 Apr 2010 12:40:03 +0000

@ MissGina: That’s awesome! And I’m so with you: I’d give up the new Lexus for travel experiences or something else… that’s just me (and you).

@ Baker: Agreed that simple and joyful experiences in life doesn’t have a price tag. Life is meant to be enjoyed, not to pursue more and more money … to what end? I’ve seen too many people who make so much money but never seem to enjoy it. I think we can apply Parkinson’s law to money: the number of things you want expands to fill (or expand past) the amount of money you make.

By: Baker

Baker — Thu, 01 Apr 2010 04:07:30 +0000

The topic of money seems to be a topic that many people seem to differ on. I believe that money buys freedom, that may allow you to have experiences you otherwise would not have. But, also I agree with your point here, that it isn’t the end all be all to the actual experience. I like how you mentioned also the reason we buy what we buy, it really puts the whole buying things you don’t even want just impress others into real perspective. Money is an energy and we all have to deal with it to function in this society. With that said, the simple and joyful experiences we have in life doesn’t have a price tag.

By: MissGina

MissGina — Wed, 31 Mar 2010 01:52:55 +0000

All 4 countries I visited last year were planned in less than a months time. I swear that is the best way to plan a trip. The experience was PRICELESS! I’d rather catch public transportation knowing that I’ve been to Paris rather than have a new Lexus. Great post and thank you for sharing it!

By: Valerie M

Valerie M — Tue, 30 Mar 2010 21:44:26 +0000

@ Jeremy: Thanks for distinguishing between impulse spending (which is also emotional) and the kind I’m talking about. It’s something to be aware of because in impulse spending the awareness of the emotions isn’t really there – it’s just pure acting on it without knowing why. And for the record, I could spend hundreds of dollars on books (that I want to read), plane tickets (depending on where I’m going), and business related courses and (most) purchases without blinking an eye. Ask me to spend money on most clothes, textbooks, movie theater tickets, or think too hard about the rising gas prices, and I’ll break into a sweat.

@ Mike: Exactly, most of our purchases are simply to impress others. Taking the time to impress ourselves is the real challenge here. I think that’s sweet how you’ll buy things to get an emotional response from someone else, namely your wife. Giving to others can be a great reason to spend money if it’s not overdone. If it’s done with a lot of thought behind it, even better.

By: Mike Key

Mike Key — Tue, 30 Mar 2010 17:59:37 +0000

Valerie, great post. I think that some people don’t realize that a lot of what they spend money on to make themselves happy is really about impressing other people. Thats why I liked this part in your article.

“First off, you’d have to start getting into a habit of being aware of why you buy the things you do. ”

For so many the emotional response is, this will get me noticed. And I think that’s why leads to the debt personally.

I also make a lot of purchases based on emotion, but not to impress others, but to satisfy myself or my wife. I love spending money on her that gets an emotional response.

If that makes sense.

By: Jeremy Johnson

Jeremy Johnson — Tue, 30 Mar 2010 16:00:33 +0000

From You: “First off, you’d have to start getting into a habit of being aware of why you buy the things you do. What are your interests and desires and how do they relate to how you spend your money? Are they on par with each other? If your great passion is food, are you spending your money on ways to learn about food and how to cook food – or are you spending it on expensive car payments and insurance that you don’t need? Even if you don’t know what your interests are, you can get hints by looking at what you spend and why.”

So True – this is much different than ‘impulse’ spending. Impulse spending is wanting that new car, wanting that TV, craving fast food, buying because your heart flutters. I like that you mention using you ‘great passion’ as kind of a measuring stick against what you are spending your money on. This hits home true for me – I really don’t mind even large amounts of money going towards what I am passionate about and especially if I believe it will return more over time. Thanks!
Jeremy Johnson´s last blog ..Video – Garden Of Life Series Part 1

By: Valerie M

Valerie M — Tue, 30 Mar 2010 00:18:57 +0000

@ ForNot: There is definitely a risk of going into debt over emotional purchases just as there is a risk of losing out big when trying to be TOO logical about purchases. In an ideal world, there definitely needs to be a balance of both and that’s what I strive for in most of my purchases. One of the things I struggle with is sacrificing too much of my wants and even my needs in the name of being logical, which is what inspired me to write this. Logic can easily convince us that emotions are worthless, frivolous things to be avoided when in fact they can be the key into living a great life and having a positive relationship with money… IF emotions are reacted to effectively. And that can only happen if people are more aware of them and accept them, rather than trying to stuff them in and invalidate them.

@ Richard: There has to be a 3rd group of people that are torn between the two extremes, and that’s where I feel like most people fall in… myself included. The problem is this happy medium is so elusive, lol! Thank you for the recommendation on Yodlee. I’ll have to check it out. I do wonder how effective it will be however, with the credit industry crunching down and raising its standards. It may deter people from using CC’s the way they used to (at least temporarily). That’s great you were able to accomplish so much by focusing on your desires and on experiencing things. I can definitely relate: I do not care about having the newest car or gadget. They’re interesting, definitely, but they aren’t high on my list of priorities. I know what I don’t care about and that, I believe, has helped me stay out of consumer debt.

By: Richard Riley

Richard Riley — Mon, 29 Mar 2010 17:27:12 +0000

Awesome advice Valerie! It seems that there are 2 groups of people: the minimalists who try to narrow down their belongings for the sake of not having any attachments and then you have the people that are impulse buyers. The ‘you only live once, spend all the money you can’ type of people. I think it is good to find a happy medium. Like you suggest in this post, spend money on things that are important to you and minimize your expenses on the things you don’t care so much about.

One thing I would suggest to anyone wanting to keep track of their expenses is to set up an account (it’s free!) at the Yodlee Money Center and set it to keep track of all your credit card purchases. Don’t buy anything with cash and only use your credit card (don’t forget to pay off your card at the end of the month, though!). Yodlee will track each and everyone of your purchases so you can see when you paid for a movie ticket or for gas. Everyone recommends Mint (which is run by Yodlee) but I found it to be too buggy. You might want to check it out.

For me, I don’t care about cars or getting an iphone. I care about travelling and experiencing things most people don’t get to see. So, as a result, I choose to spend my money on travel and drive the same car I had when I was 17 and I couldn’t be happier!
Richard Riley´s last blog ..Test Blog Post

By: ForNot

ForNot — Mon, 29 Mar 2010 16:23:33 +0000

This is an interesting concept. I believe that when spending a large amount of money, like buying a house or a car, you MUST be emotional about that purchase. It is simply too much of a commitment for you not to be.

On the smaller items, emotional purchases are great for discretionary money. What I have seen far too often is the emotional purchase that buries someone in debt. The debt then is a significant stressor that only more emotional spending seems to address, and then only for a short period of time. I think that’s a dangerous cycle.

However, when your means support it (even if you live below your means specifically to support it), the emotional purchase is one that is well worth the experience, as you’ve noted. I have literally done some of the things you suggested like hop on a plane for a couple of days and leave the country on a whim. I wouldn’t trade those moments for the world.
ForNot´s last blog ..Just Bus’ A Move