Can You Spend Money on Something Frivolous When You Have a Debt That Needs to Be Paid Off?
Should you use all your discretionary money to pay off debt, or can you spend money on something that you have been eyeing? This is what we are discussing this week.
Every Monday, we address one of your pressing personal finance questions by seeking advice from several financial experts. If you have a general question or money issue, or just want to talk about something PeFi-related, leave it in the comments or email me at alicia.adamczyk@lifehacker.com.
This week’s question comes from Sizer:
I bought a pair of shoes for $ 200 recently on a rough and hectic day. Is it too much to pay for a period of happiness, especially when you have debts and student loans? I make all my payments on time or sooner. I really feel guilty because I think about what else this money could go to, but then I remember that it’s just money and it will still be spent, so why not spend it on something that I like?
This is what individual experts usually say about a problem that affects each person differently: if you need personalized advice, you should see a financial planner.
This is your money and your financial future.
Obviously, investing in an extra $ 200 in debt instead of a pair of sneakers would be a financially responsible business, and you clearly understand this and are struggling with. But in this case, you can give yourself a break.
Even the thriftiest of us make mistakes from time to time, and while you shouldn’t get into the habit of buying expensive shoes every time you have a bad day, guilt riddled with guilt will likely only make you feel worse. In my experience, feeling like shit is not the best motivator.
This is the interesting (read: devastating) reality of American life: we promote consumerism in all forms and yet shame each other for buying things we “don’t need” when we have debts to pay, or we we live from paycheck to paycheck. We equate our value and morality to some extent with our ability to have a first-class credit rating and zero debt, maximizing our pension contributions each year and having a well-stocked emergency fund. It’s the same mentality that makes you stop buying an iPhone if you want medical attention, or that avoiding server rollovers will somehow lead to a better and fairer wage environment in the restaurant industry. But having debt does not mean that you are deprived of the opportunity to enjoy frivolous things or that you should be tormented by a sense of guilt for every penny spent that does not go to some “important business.”
So you have a debt. You pay – sometimes earlier – and that’s important. Yes, any extra bits can help you dig up faster, but there is something to be said for pampering yourself. We all deserve from time to time a bouquet of flowers or a new pair of shoes to enjoy without guilt or shame. We all deserve what brings us joy.
Containing impulses to spending
But if impulsive spending really bothers you – maybe that’s why you have some of that debt – there are a few strategies you can use to avoid it:
- Obvious: only use cash
- Or try using a prepaid debit card for a few days / weeks.
- Follow the Christine Wong 10/10 Rule
- Ask yourself this question: How will buying improve your life ?
- Delete the saved online payment information
- Focus on alternative cost
Understand your triggers. You said you had a tough day, so you bought shoes. Does this happen often? Is there another outlet you could use instead of shopping online when things go wrong? Next time, instead of browsing your shopping list, try taking a walk or writing a complaint in a diary (my preferred method of problem solving) to clear your head. Buying things every time we feel like it has never been easier, but ask yourself if you really need them, especially if it makes you feel guilty afterwards.
Then think about your other financial goals. Maybe that $ 200 isn’t needed to pay off debt, but are there other things that are important to you (like saving for a vacation or owning a home someday) that you don’t tend to consider when opening emails from your favorite stores? Think about these goals the next time you go for an impulse buy.
Most importantly, make sure you have a debt repayment plan ( snowball, avalanche, or whatever you create yourself). If you are happy with the debt plan, invest a little and don’t dig yourself deeper, buying an expensive pair of shoes doesn’t mean a disaster for your financial future.
And enjoy your new shoes. They will look great on you.