Thoughts to Start the New Year.
Are you utilizing your money to help you feel better or be better?
After the holidays and as a fresh new year starts, the most common act is to revisit and evaluate budgets and expenses for the coming year. I have friends who take this time to purge their homes of all the unwanted items acquired over the past year. Some go as far as doing the “No Spend January” challenge. The practices of evaluating and purging are so renewing and set up a mindset that we can hopefully sustain in the new year to come.
I see the headlines now: “New Year, New You!”, “Drop Those Extra Pounds”, “Make 2025 Your Year”.
Reflecting on the previous year as we transition to a new one is typically done with the idea that we want to be better, but rarely is there a true evaluation of the habits we have in place that are hindering this idea.
A thought that came to mind is breaking down the daily practices that are passive habits that have a significant impact when totaled out. Are you spending money on making yourself feel better at the moment? When you have a stressful day, do you find yourself “treating” yourself to something small like a coffee or a quick treat? When you are bored, do you pop into TJ Maxx or Target to browse and kill time only to find a great deal that is too good to pass?
One of the first things we look at when exploring improving wellness is the cost and how it will impact our monthly budget. While on the surface, a monthly gym membership, healthier food choices at the grocery store, or a commitment to a wellness coach may seem out of reach, it can boil down to instant satisfaction or delayed gratification.
Research into the monthly habits of people produced some numbers that are equally surprising and not surprising. The Perfect Brew reports that women spend about $2,327 per year on their coffee habit, while men spend almost $400 less, at $1,934 per year. A survey conducted by Advanced Dermatology in 2022 of over 1,000 Americans on their annual grooming costs—and get this, the average spend came out to $877 for women (and $592 for men). Though the survey includes other beauty maintenance costs like skincare, makeup and even gym memberships, topping the list were hair products, haircuts and color. Americans spend an average of $3,639 annually eating out—roughly $300 monthly. And those fast-food meals and restaurant tabs continue to add up. In fact, Americans spent 20% more eating out in 2022 than they did in 2021.
Affordability comes down to priority. Granted, not every person has space in their budgets for extras.
No matter what your personal budget looks like, a question to pause and ask yourself is, “Why do we buy stuff?”
Primarily, it feels good. Buying things releases pleasure chemicals in the brain, and we all love to feel good.
We cannot help it. We find it hard to resist a good deal. There are many unconscious processes influencing purchases. The more we are exposed to advertising, the more we crave products, known as conditioning. Ads showing a product associated with many rewarding factors lead to a phenomenon known as the mere exposure effect, where we want to buy the item to reap all that comes from owning it.
We need it. Abraham Maslow talks about how we are driven by needs. The major needs—physiological, safety, love-belonging, esteem, and self-actualization—can be considered major motivations to buy stuff.
We like novelty, but we get bored easily. Humans habituate to what stays the same. The new brings excitement, yet it soon becomes passe. Our attention is drawn to the next newest thing that will return that feeling.
We feel special. We may feel special when we have something that no one or few others have. When we are unique, get more attention, and this attention can be reinforcing. This is seeded in social comparison behavior—comparing ourselves to those who have more or less than us.
Many factors influence buying things. To prioritize where our money goes, it is important to individually evaluate our why as once we understand our why, we can create a plan to align our spending with our overall life goals.
Ideally, we should use our money to "be better" rather than just "feel better." This means we should invest in experiences, skills, or things that contribute to long-term personal growth and improvement, rather than just temporary emotional relief through impulsive purchases.
Key points to consider:
Emotional spending vs. mindful spending: Spending money just to feel good at the moment can be a trap, while using money to pursue goals like education, health, or travel can contribute to lasting well-being.
Experiences over things: Research suggests that spending money on experiences like travel or concerts often brings more happiness than buying material possessions.
Investing in yourself: Using money to learn a new skill, take a class, or improve your health can be a way to "be better."
"The question of what you want to own is also a question of how you want to live your life" - Marie Kondo.
This statement means that the things we choose to own are deeply connected to our desired lifestyle. The objects we surround ourselves with reflect our values, priorities, and desired experiences in life; essentially, our possessions manifest of how we want to live.
Key points to consider:
Beyond just material items: This goes beyond simply accumulating things; it's about considering the experiences and activities those items enable, like a hiking backpack representing a love for the outdoors or a well-stocked kitchen reflecting a passion for cooking.
Personal values and goals: Deciding what to own reflects our personal values and goals. If we prioritize sustainability, we might own fewer items and those made with eco-friendly materials.
Mindful consumption: By consciously choosing what to own, we can create a life that aligns with our aspirations and contributes to our overall well-being.
Again I ask, are you utilizing your money to help you feel better or be better? How may we seek ways to be better long-term instead of feeling better in the moment?
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