Considering Value

A major unflattering notion tied to budgeting and saving money is the idea that you cannot splurge on unnecessary items.  Most of us have heard about the strategy of categorizing your expenses into two strict columns, what we ‘want’ and what we ‘need’, and eliminating the bulk of our want list.  Not only is this painful to do, but also extremely impractical because of the ambiguity of these terms.  For example, when we are feeling particularly down one evening, does our desire to go out for ice cream stay a want or does it become a need?  When does a need for new clothing overstep its boundaries into the want category?  When we begin to apply it, this simple strategy can become complicated very quickly.

An alternative is considering the actual value of the items or services we buy.  This process is a very individualistic one and it recognizes that the worth of items will be assessed differently by different people.  A good way to start is by honestly determining what is most important to you.  It can be that long-term goal or it could be a hobby, a sport, spending time with friends or just looking great at work.  Then, assess the value of an expense in accordance with what you find important, how often you will use it and its overall quality, rather than cost.  You may find yourself becoming a happier shopper, buying fewer items, but still being more satisfied with what you purchase.

Give Yourself Leeway

They say that every diet needs a little wiggle room and budgets are no different.  Splurging or overspending in moments of madness can definitely be disappointing and frustrating, but they should not cause you to throw in the towel.  In fact, it is often effective to reward yourself once in a while with something completely trivial, like a ridiculously expensive latte or a great jacket.  If you plan to do so, it will feel gratifying and will not leave you wallowing in regret when the bill comes.

It’s Not All Bad

Though some people enjoy it, dealing with finances and saving money can be confusing and downright frustrating.  Many of us do not have the time to hunt for bargains or the will to deprive ourselves of the things we love.  Dealing with money is a vicious endeavour.  When trying to obtain it makes us miserable, we begin to wonder if the eventual happiness is worth waiting for.  If, instead of cutting down abruptly, we learn to make smart, practical choices, we can save money and budget appropriately while still enjoying and pampering ourselves in the process.