Money for the Rest of Us

I don’t really care about clothes or shoes or designer labels. So, I think it’s crazy when I find out my friend spent several hundred dollars on a pair of jeans. But then again, she thinks it’s crazy that I would spend $15 on a notebook or $50 for a nice dinner. One of the people I love most in this world buys cast iron pans—spending upwards of several thousand dollars per year on antique metal pans. But, she wouldn’t spend the thousand of dollars I spend a year on travel.

When I recently berated my friend for her jeans purchase she reminded me of my own unique spending habits. And then it really hit me: everyone places a different dollar value on different things. It’s impossible for me to judge the joy that my friend gets from wearing her jeans, just as she can’t appreciate how much I love writing in a new notebook.

Because we can’t understand how much pleasure or benefit someone gains from a purchase or experience, it is important, in any sort of relationship, to keep from judging someone else’s spending. Because when you criticize how someone spends their money you are criticizing their values.

How does this translate back to our own spending habits? It can help us figure out what we value and what we should spend money on. We should ask ourselves: “What’s it worth to me?” When you ask yourself that question you can get a better idea of whether or not to make a purchase. For example, when I’m at the grocery store buying a bottle of wine, occasionally I will come across a bottle that’s on sale for $15 down from $20. I think to myself “that’s a great deal, maybe I’ll buy it.” But then it occurs to me, $15 isn’t worth it (to me). I like wine, but I don’t love or appreciate wine enough to buy an *expensive* bottle.

Another example of this happened to me today. The Powerball lottery happens to be up to $240 million. I know buying lottery tickets is a complete waste of money. But, that one dollar lottery ticket was worth it to me today for the minutes (hours?) I spent thinking about what I would do if suddenly I had that much money. (I wouldn’t change much, actually.) I’m not encouraging you to go out and buy a lottery ticket; I only buy one a few times a year. But, if you can afford it, and it’s really worth it to you, buy the expensive pair of jeans, the cast iron pan, the wine, lottery ticket, or notebook. Just remember, first ask yourself, “What’s it worth to me?”