The final step: Determine if your spending aligns with your priorities.
Right now, small purchases like frozen yogurt and the occasional Uber ride are worth it because they bring me happiness without getting in the way of my long-term savings goals. Again, we are incredibly lucky to have a job we love that allows us to live comfortably. If you make conscious and costly lifestyle changes, such as moving to a larger, more expensive apartment, having children, or getting a pet, you may not be able to justify your expenses in categories 1, 2, and 3. — and I’d also think a lot about whether a Category 4 item is worth it to me. And of course, if you find yourself in a personal or family emergency that requires you to give in financially, these categories are eliminated entirely.
To reach your savings goals, you should aim for frugality, not frugality, according to Marani. “Thrifty means being willing to spend money on things of value,” she explains. “Cheap means you don’t want to spend money on anything.” So understanding what you value is very important.
So what have I learned from this?
One of the surprising side effects of this experiment was that I questioned many of my purchases at the moment knowing I had to write about them in this article. There have been a few times I’ve wanted to, but I knew I didn’t need anything, so I didn’t want to justify the inevitable purchase.
I’ve definitely made impulse purchases in the past, but I find that writing down and evaluating all my spending keeps it in check pretty quickly. That made me more likely to stop going to a few stores and stick to my grocery shopping list.
Going forward, I’d like to continue spending mindfully and assessing whether the purchase is worth it. Now it’s worth spending money on fitness, time with friends, and a clean apartment. Looking at “I can’t believe I paid X” purchases definitely informs future spending. Based on your spending this week, look for free or cheap date night options, make more use of your local library, and keep socializing at home or at a friend’s house as much as possible. I would like to take a broader look at our finances to make sure we are properly planning for the future.
Basically, this experiment was a thought exercise that I recommend to anyone interested in assessing their money habits. Are you spending money on stuff? Most of the time, this particular week the answer was yes. But we really need to buy a coffee maker.
