When people want to see how much money they kan keep in their pocket often consider the fact of how much money they are spending. But is this most important?
Money doesn’t make you happy, but not having any will not do any wonders for you either. The only reason to make sure you have enough money is to have the power of choice. If you have money you don’t necessarily have to look at how much you spend but rather on how much money you lose when you spend it. For example you could go out and buy a tool to make some furniture yourself. So yes you are spending money but you are buying something that you can use for a long time and even save some money on the furniture you would have bought. It’s something different if you are struggling for money and you buy the most expensive luxury piece of furniture out there. You will only lose money on it.
If you are just parking your money somewhere safe, there is no problem. If you buy something expensive that drops in value instantly you are spending to lose money.
If you start comparing what people spend money on there is many differences between people. The people with the most money are also spending money, however if they are still in the money gathering fase they will spend wisely. a Pair of high quality shoes may cost some more but they will also last longer. Alternatively there are people that spend multiples of that high quality shoe on a phone. When the new phone comes out they rush to the shop for the newer model. At this point there is no return on the money, if the other phone is still working (great) there is no need to replace it. The phone will not increase in value.
When you think about if you have to spend on something consider whether or not it’s a need or a want. A need is important to spend money on because you can’t do without. For example if you have a side-business that requires you to do some work on a laptop you need to have a laptop. However replacing the laptop each 2 year is a want. You only want the newest thing, but it isn’t necessary. The more you look at if something is a want or need the easier it will become to distinguish the 2. The last step to take is to consider how much you should spend on it. Rather go for a quality product instead of buying a cheaper product more often.