Where to spend the big bucks

Most of us have limited funds and a lot of pressure for ways to spend them, not to mention some big purchases through life that may be expected of us. Many of us believe that once we get to a certain stage in our lives, there’s a logical next step, and it comes with the competitive desire to outdo our peers. We show off with unneeded acquisitions. This concept is worth taking the time to consider before jumping into a big financial commitment that may come out of expectations rather than necessity, or even personal want. Which do you think will be better for a marriage – a $30,000 wedding, or to elope and enjoy a $5,000 honeymoon annually for six years? Which comes with less stress through the year – paying for and maintaining 2 cars in a family, or having one car and when a second vehicle is needed, using Uber like a personal driver? By hiring Uber we could be able to have money left over for treating ourselves. Think about living in a home, which could be our biggest life expense, by contracting to 25 years of mortgage payments, maintenance, and property taxes. Is it wiser to spend that money on 25 years of investing while renting and taking on less responsibility? There’s no right answer for everyone. Of course each situation is different, but on the flip side, society’s expectations are not right for everyone either.

Take action: Especially for big expenses, consider all your options before following society’s expectations. Is an expensive fairytale wedding more important than spending money on your marriage and relationship? Is a car worth it’s convenience when you consider the driving and maintenance costs? A mortgage is debt, a house is not an asset until you’ve paid off the loan, so are there better investments for your lifestyle?

Inspired by Laura Vanderkam’s book, All the Money in the World: What the Happiest People Know about Wealth.

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