Home > Personal Finance > Spending & Saving > Smart Spending
Created on: April 19, 2009
I have to say this. If you're trying to figure out how to spend wisely to save money, you can't. You can change your spending habits to try and maintain a lifestyle. You can't spend wisely to save money. The only way you save money is when you stop spending.
There are only a few things that we really need in life. Food is one of them. You've already heard about discount grocery stores, coupons, and growing a garden. So, you know all that. Some of us need gas to get to work. We may need a car, car insurance, and housing. After that, we really don't need anything.
Sure, that new lawn mower may be nice. Yet, the old one still works. It sure would be nice to have a patio set on the back porch to allow entertaining of friends. But, you don't need it. That new jacket sure would be nice and you've found an outlet store selling it at half price. But, you don't need it. You still have the jacket you bought last year.
New car prices look great and you don't know when the pricing will be this good again. You really don't need the new car. Your old car is only two years old and you bought that when they were giving away zero percent interest. You thought the prices were really low at that time, too.
Here are some interesting statistics. The New York Times published an article in January 2008. They identified our consumption and waste factor at 32. Each person in the US consumes 32 times a single individual in a developing country. The World Bank indicates the global poverty line at $1.25 a day.
O.k., I like my flushing toilet, too. And I've grown rather fond of heating and electricity. Yet, what I want to drive home is the very real fact that if you are trying to save money through smarter spending, it's not going to happen. At less than 7% of the total global population, we are enormous consumers. Look around your house and identify the things that you don't use every day.
The ugly bottom line is you have to stop spending.
For the middle age group reading this article, some of us can remember growing up around households that didn't have a T.V. Almost everyone in the middle age group grew up without a computer. These facts have changed today. People have a T.V. in three different rooms and computers in all the bedrooms.
The last decade and the glory of consumption has distorted our perception.
I was reading some letters from my Great Grandfather who lived in Germany after WWII. He had two suits and three pairs of pants. He could actually fit all his clothes into one little dresser. He gave away one of his suits to a man who needed it. Can you imagine someone who needed a suit more than he did?
Yet, the real fact is many of us can't imagine it. Many of us can't imagine a two year period where we only needed three pairs of pants. For those who can imagine it, they are not reading this article. They've been forced to learn how to stop spending.
I remember shopping for school clothes when I was little. I was allowed two pants and three tops. Those five items were to last me for nine months of school. I was able to augment my clothing purchases with hand-me-downs.
Consumption has become the drug of choice in the U.S. Coming off this drug is as hard as stopping your sugar consumption. Finding ways to buy all those little things for less isn't smart. It's allowing you to continue your drug binge and justify the means. With many people facing shrinking incomes, you won't be able to save money. You'll just be able to have all your little things.
Learn more about this author, T.J. Wolfe.
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