It can sometimes seem really unfair that some people seem to be always spending money and yet you cannot afford to do so. We all know people that seem to holiday multiple times a year, have their home redecorated regularly, always have new clothes and things like this. It is hard not to feel envious or wonder how they can afford to live like this. Obviously there are some people that earn a lot or inherit wealth and can afford this, but there are also many people not in this situation who still seem to be buying lots of luxuries and we may wish that we could afford them as well.
It is worth starting by understanding that we cannot have money and spend it. What I mean is that if we want to build up some savings, pay off debts, have enough to cover our bills and some to fall back on in case of emergencies, then we cannot spend lots of money as well. Otherwise we’d find ourselves relying on payday loans without credit checks etc. This means that those people that seem to be always spending money are unlikely to have this. They do not have the security of savings, knowing they are paying off their debts and managing their bills well each month. There is also a possibility that they are borrowing money in order to pay for their things. Many people have loans, credit cards, overdrafts and things like this and use them in order to buy themselves things. They feel that they deserve that holiday, those new clothes or to redecorate their house and they buy it when they want it and if they do not have the money they borrow. This can seem easy, but once you have to start repaying the money it can get very tricky. You will need to find the money for those repayments and have to cope with a loan. It could end up leading to a lot of stress, especially if you struggle to find the money that you need and so this could outweigh the fun and relaxation gained from buying the holiday, clothing etc.
It is possible to buy luxuries without borrowing money but you have to realistic and think about what you really want. We could buy all sorts of bits and pieces, lots of books, cushions, candles, clothes, shoes, kitchen equipment and many more things, but where would we store them? We could go on holiday all of the time but when would we have time to spend with our friends and family, to go to work, pursue our hobbies and things like that. We do not have the time or the space to buy everything that we want and so we will have to limit our spending anyway.
It is also worth thinking about why we want these things. Is it really that we need them, that they will make us happy, that we will feel better when we have them? Or is it because we think that will happen as the marketing companies have sold us the idea that it is only when we have lots of possessions and take lots of holidays that we will be happy. There are lots of ways to be happy and many of them do not involve spending money. Obviously we are generally happier if we can afford the basics that we need and know that we have money to fall back on if we need it. However, beyond that will we really be happier if we spend lots of money, have lots of things and go on holiday a lot? Think about times when you have been happy and whether these were due to you being on holiday, having lots of things that you bought or for other reasons?
One way to have more things is to pay less for the things that you are currently buying. This may sound a bit odd, but many of us are paying more for things than necessary. If we start to look at everything we buy, then we could pay less for them and save money. This not just by comparing prices in the supermarket and spending less on food but by switching suppliers and looking at the costs of everything we spend money on. So starting with rent or mortgage, looking at financial products, utilities, contracts and everything else we buy, we could find that we could reduce what we are spending on many things and therefore have more money available. There is a problem though with saving money. Once you start you will not want to stop and therefore you will enjoy spending less and may decide you do not want those extra possessions or holidays after all! It can feel great knowing that you are not overspending and that you are able to put money into your savings or pay off your debts.