Plan Your Purchases Along the Fulfillment Curve so You Know When It’s Worth It
At a certain point, buying more things won’t make you happy. However, there are some things you can buy that will definitely make your life better. This execution diagram will help you understand which is which.
As the personal finance blog Freedom From Money explains, there is a satisfaction curve that most of us face when it comes to what we spend our money on. Aside from things like survival and comfort, spending some money can make us happier. However, after a certain point, it turns into wastefulness, and spending more money is simply wasteful.
While it is difficult to define for everyone, displaying your personal purchases and desires on this graph can be helpful. For example, how much home would you need to buy to be enough for it? How extravagant would that be? Is there an upper limit to how much money you can spend while making yourself happy? If you are planning your life and cannot find where what you are spending your money on may appear on this diagram, this could be a signal to change priorities.
Will it make life better? How to find out before buying | Freedom from money through Rockstar Finance