Finance & Credit Card News
Credit Card Blog Posts
Credit Card Articles
Everyone has their own way of saving and spending money. Some people spend money on homes and cars while other people spend money on the day to day things that provide higher levels of happiness. There are better ways to spend money to have more fun throughout the year.
There are some who choose to save as much as they possibly can so they can put a sizable down payment on the nicest and most expensive homes they can get financed. Some will even pay cash for the entire home to settle in to enjoy their new housing with all of their hard earned money – and not have to worry about any mortgage payments.
These two scenarios are a great way to save and begin investing money. However, there are also those who consider this method to be wrong. Laura Vanderkam recently wrote a book that talks about how everyone gets and spends income. She writers that much of what we do that we think is right is not right at all.
The Best Spending Option
Vanderkam has learned that spending a smaller percentage on housing is the best option possible. Those who want to make smart financial decisions will spend a little less on housing, even though real estate agents will try to get everyone to spend considerably more. When less is spent on housing, people have more options. This includes making career changes, taking a sabbatical or even spending more money on some fun things.
Vanderkam writes in her book that more people should focus on buying what makes them happy instead of buying what society says they should buy. This means that some of the other things in life need to be forfeited. Giving up the best house or the best car can be the best solution available in order to afford all of the other things.
Just because someone is approved for a large mortgage amount doesn't mean that's what needs to be spent. The philosophy of spending less is beginning to become more apparent. When people are ready to purchase their first house, they tend to spend less than what they are approved for nowadays. This allows them to spend their extra money on vacations, socializing and much more. These experiences will provide much more pleasure than a fancier home with a little more square footage.
There is a basic assumption about money that haunts society: there is never enough. However, this is not always the case. Many people believe this because they are told to believe it. Everyone has the ability to make rational decisions about money. No one forces anyone to earn or spend money in one way over another. When anyone steps back, they will see that more resources are available than initially thought to earn more happiness than what many think they can.
Even the traditional purchase of a diamond engagement ring should be reconsidered. That $5,000 (or more) can be spent on years of nice dinners out, floral bouquets and so much more.
Reining in Spending
Social media is not doing society any favors. People trying to rein in spending are often finding it difficult to do so when they spend too much time on social media. This is because people are keeping up with the Jones. The Jones family may be someone that was in your life years ago that you never talk with anymore. However, if they post on Facebook that they just got back from a fancy (and expensive) vacation, you will be making comparisons about it to your own way of living. It's not right that you do this but you do it anyways.
The book that Vanderkam wrote is packed with many fresh ideas about earning and spending money. It provides people with a new perspective on how much funds are really needed to achieve the average goals. She claims that maybe people aren't spending their money correctly if it's said that it can't buy happiness.
It's good to be happy and money can and will bring happiness. Anyone who says they don't have the money to buy what they want or do what they want obviously isn't spending their money right. Sure, they may drive the fanciest car, but is that what's bringing them the most happiness? Probably not. Those that drive lesser cars and lesser homes often have the money to take the fancier vacations, traveling, and buy the various things for their homes that really make them happy.
Vanderkam is a mother of three. She knows about spending money and trying to keep everyone happy. By criticizing conventional wisdom, she may have stumbled onto something – society is spending their money wrong. By learning to spend money differently, anyone can have more money to spend on the fun things in life.