7 Steps to Zen Spending

Most of us spend money without really thinking about it. We’ve done it so much that it’s practically a reflex as it is a way of life. But spending has both long and short-term consequences. With an effective thought process, your spending can be far more meaningful to your life. You’ll probably save a lot of money, too.

To get more satisfaction from your money, follow these steps:

1.      Before spending any money, take a moment. Even if it’s just a few cents, take the time to ask yourself if this is a good way to spend your hard-earned money. Why are you purchasing it?

• Simply adding some space between your impulse and your purchase can eliminate a lot of unnecessary spending.

• This doesn’t only pertain to the typical impulse purchase. It’s also your monthly bills. There are people with cable service that never watch TV. Examine all of your spending and determine if the expenditure is worth it.

2.      What are the short-term costs? For some people, buying a pizza means paying the electric bill late. For others, it’s a sense of guilt. Look ahead over the next month and determine what it will cost you. Perhaps buying that pair of shoes means you can’t take the kids to see a movie next weekend.

3.      What are the long-term costs? The future value of money is hard to believe. There are many calculators online that will do the analysis for you. But consider that $100 invested at 10.8% (the average long-term stock market return) is worth over $2,500 in 30 years.

• Is the $100 item you want today worth giving up $2,500 in the future?

4.      What is the effect on your health? Candy, alcohol, tobacco, and potato chips can be  

• Having a guilty conscience is another thing to consider. If it feels wrong, it likely is wrong for your situation.

5.      Do you need it? Do you love it? Before purchasing something, ask yourself if you need it. If you don’t need it, ask yourself if you love it. If the answer to both of these questions is “no,” why would you purchase it?

• Most of us don’t have limited resources. Limit your purchases to things you need or love. It’s worth the time or extra money to find and buy something you love and will enjoy long term

Finances are an important part of life. It’s much easier to enjoy life if you have the resources to pay your bills and enjoy your favorite activities. This is much easier to accomplish if you’ll think about your spending in a new way – Zen spending. Live with intentionality 😉