Why do I keep spending??

[caseyc]

My original intent for doing the full time thing is to help save money instead of spending on rent, etc. Although I've been successful in not spending on rent for past few months now, I noticed I keep spending money when I think I should be saving instead. I'm not talking a ton of money spent, more like a hundred here, a few hundred there. I'm wondering if it's because maybe I feel sorry for myself for not living in an apartment anymore, so I've been consoling myself with retail therapy?? The first few weeks of starting out, I justified the expense that it was a necessity. Such as spending on new underwear, shirts, socks...that was a few hundred there. Then getting new jacket, vest, caps and other outdoor wear. Another few hundred there. Just this past weekend, Macys store had their annual 25% extra discount for friends and family sale. So what did I do? Bought a new watch! I justified this by telling myself I don't have to spend $40 each for battery replacement on my 2 Tissot watches, as this new Citizen EcoDrive watch uses light for power. Heck, I still find myself checking out the new stuff at Best Buy, REI Sports, etc, even though there's nothing I really want or need. I've been watching YouTube videos on van-dwelling by Don Carpenter. I love his videos and his philosophy of not paying rent, therefore you have the luxury to buy stuff. As much as I enjoy his videos, maybe his way of thinking is affecting my spending habits? By far, my largest monthly expenses is eating out daily since I don't cook. I figure I spend at least $600 monthly on eating out for breakfast, lunch, dinner. Unfortunately, my eating out habit won't change anytime soon. Anyway, just wanted to rant a bit and get this off my chest. Hopefully this spending habit will pass soon and I can start saving like I had planned.

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BTW: here's a pic of my new watch. I was thinking of getting the Atomic version that always knows the correct date and time, but that sucker is even larger and thicker than the one I have. The one I have now is borderline almost too large for my wrist.

 

[Lucky mike]

its not about your expense account.......its about the allowance you give to yourself....you have not kept up your end of the budget deal........now go to your room!!!!.....Your GROUNDED!!!!....Stay in there til you learned your lesson!!!

And give me that watch Too!!!!!!!!!!!!!!!!!!!!!!

 

[kyonu]

Cool thing about a budget: It never changes! So if you overspend, you know exactly what you can and cannot do. 8)

 

[wagoneer]

It's that Mr. Gadget side that is the true bad boi. I have a citizen solar tech 180 titanium the only difference is I got it at a garage sale for 40 bucks, I have the very same affliction in gathering, this weekend for sure.

 

[PastTense]

Pay yourself first. In other words deposit a significant amount of your monthly earnings into a savings/investment account immediately when you receive it. And never use credit cards. This will force you to limit the amount you spend.

A great many of us never prepare meals which are remotely complicated, but also never go to restaurants/fast food places. We just eat food as it comes from the grocery store or perhaps simply heat it up.

 

[mconlonx]

I have spending issues, not proud of it, but willing to admit it.

Lately, when I've had the urge to buy something, I buy silver. Bullion, Silver Eagles and Maple Leafs, junk silver coin...

Satisfies the spending urge, ties up money that would otherwise be spent on consumables or luxuries into something with investment value. A few years ago, when me and ex- were going through tough times, we sold silver at $40+/oz; nowadays I'm buying around $20/oz. Less accessible than cash; more accessible than other forms of storing/investing money.

And if I need cash, I can sell at close to what I paid, maybe lose at most 10% at the moment; pawn for a 50% loss; or even use junk coin at face value (about the same rate of return or better as auctioning/yardsaleing unwanted consumer goods). But hopefully be able to hang on to most of it until it gets to the point where it would make sense to sell at a massive profit, another price spike.

I'm not an expert in metals commodities by any stretch of the imagination, but I do think I've found a more positive outlet for the urge to spend excess cash, redirecting a weakness into a positive, or at least much less a detriment.

 

[WheelEstate USA]

Personally, I don't understand the watch thing. How many electronic toys do you have that tell the time?? Moreover, how damn many do you really need.

Maybe you need to let someone drive your van and you watch that poor thing lumber down the road, and lean precariously as it rounds a corner.
You can't play the keep up with the "Jones'" when you live in a van.

I like ya, man....but you're close to needing an intervention, dude.

Its your life, so do it the way ya want.

 

[caseyc]

Thanks guys for your input. Good to know others have the same affliction! Actually, I do in fact have a budget, which was prepared onto an Excel spreadsheet. Heck, I even have it planned for the next 3 years out to have saved over $40k by not paying rent.

Problem for me is not the ability to plan. Problem lies in discipline, or maybe lack thereof, to be exact. I need better discipline in sticking to that which I've studiously planned.

Pretty much the story of my life. Heck, if I had stuck to my original plan of investing in my 20s and not withdrawing, I'd already be a millionaire a few times over. Alas, buying new cars, spending on women (ye gads!), and getting myself in debt in the past got the best of me.

Me...bad.

 

[WheelEstate USA]

mconlonx....Good plan, as long as you buy at the right price.

 

[caseyc]

Alas, Jay...you are correct. I have too many watches. I have backup watches that backup my backups. At least I resisted the urge to buy a Breitling watch. That would have set me back over a few thousand.

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Adrian, titanium is the way to go. Titanium is way lighter than stainless steel. Well worth the extra cost.

 

[Patrick46]

I (now this is my own personal observation here) think you're trying to compensate yourself for sacrificing the apartment with something else. In this case, it's with something psuedo-useful, and even van-sized. (it's not like you bought a huge flat-screen plazma TV!!)

Should you beat yourself up over it?? I think not. It's just a watch.

It sounds like you make pretty good money, and that this purchase isn't gonna throw your monthly budget over the cliff...but it's definately something to make note of and keep an eye on. And of course, the bigger question, is WHY???

I do like Mconlonx's idea of tangible investments. You get to fulfill your desire to reward yourself with a purchase of something that makes your sacrifices of vanlife worthwhile...but at the same time, making an investment toward your future.

I'm not much for investing, and I'm not so sure I'd go with silver...but I think he's really onto something here.
Maybe you may wanna make this your own personal task...to find things like this that you can make small monthly investments on that won't stuff your van full of unuseable junk!

Good luck and keep us posted!

 

[Lucky mike]

Millionaires didnt become millionairs by spending their money.......I can prove it beyond a shadow of a doubt.

but to get there is to set a budget so low it makes you uncomfortable and then live by it !!

P.S.....having a million dollars isnt as glorious as you think it is.....nor in today's market alot of money

it will buy you misery.....it wont extend your life.......and the friends that it tends to buy you ,most are truly not your friends......and the one's that were true friends start to faulter.

These words of wisdom are spoken from experience !!!

Better to be poor & happy with good friends to follow you thru life, Than be rich with happy friends that follow your bank account!!!!!

 

[caseyc]

Thanks, Patrick. You're right, it was nothing large, since it would have been impossible for a large flat-screen TV anyway. But I almost recently bought a $400 pocket projector at Brookstone that can project movies from my smartphone onto a folding screen up to 60" diagonally. After playing with the projector for a half hour, I had to talk myself out of it! Breath, exhale, step away from the gadget!

In this case, it's with something psuedo-useful, and even van-sized. (it's not like you bought a huge flat-screen plazma TV!!)

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So true Mike. I work in finance (ironically). My last boss was a millionaire (on paper) at least. But he had blown his wad a number of times over due to extreme overspending and living life large. As a result of his jerk attitude, he had lost many friends and clients, and even his wife threatened to leave him. So I know this to be true that money doesn't buy happiness. I personally don't care to hang around people who think they are superior due to their wallet size. I don't have a large wallet myself, I'm just a dude living paycheck to paycheck and trying to make due with what I have. When I was young, I had very little, and my parents were not particularly well off. So ever since I started working, I always earned and spent money. Now I need to discipline myself to save more and spend less.

P.S.....having a million dollars isnt as glorious as you think it is.....nor in today's market alot of money

it will buy you misery.....it wont extend your life.......and the friends that it tends to buy you ,most are truly not your friends......and the one's that were true friends start to faulter.

 

[caseyc]

"Matching funds" idea...I like that! Unfortunately, I have a rather rigid weekday schedule to maintain, due to my work schedule. One day when I'm retired, I will throw all my watches and alarm clocks out the window, haha!

 

[Mac J]

"Matching funds" idea...I like that! Unfortunately, I have a rather rigid weekday schedule to maintain, due to my work schedule. One day when I'm retired, I will throw all my watches and alarm clocks out the window, haha!

I'm not sure how old you are but if you think your watches and other gizmos are going to fund your retirement you are wrong! I hope you have a pension and other retirement plans because if, as you said, you live pay check to paycheck and continue to buy watches etc you are in for a rude awakening. Working in finance as you say you do most likely means you have some kind of plan.
BTW those that say a million dollars in todays market isn't a lot of money are wrong. True, it may not buy happiness but it will give you 19% return if properly invested. A new watch will just give you the time.

 

[caseyc]

What I really, REALLY need is a simple watch or clock that will accurately tell me the date and time of my death in this lifetime, so I can pace myself to spend every last dollar.

I'm not sure how old you are but if you think your watches and other gizmos are going to fund your retirement you are wrong!

 

[Lucky mike]

MacJ.......I take it you havnt invested 1M because 19% minus fees & taxes is not that much money to live off of unless your in a van ....and you cannot make 19% consistently....The only safe in the market pays 3 %

High risk pools dont count.....I rather give it away to someone who really needed it

 

[Mac J]

touche!

One day there will be such a watch. I hope you can afford it.

 

[Vic.]

As a serial spender, I'm there with you. There's some need that's unfulfilled is what I reckon.

 

[caseyc]

If I had $1 million right now, I would do 2 things:

Take half that amount of $500k to annuitize at a life insurance company to pay me a guaranteed lifetime monthly sum until death.

Take the other half of the $500k to invest in whatever I deem fit, so I can hopefully multiply that amount.

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Ahhh, thanks, another fellow serial spender, haha! Yes, I must be habitually unfulfilled. Fortunately, I only have to fend for myself, as I have no dependents or debt obligations to anyone or any banks. Life is pretty good. Could always be better of course, but then again, could be worse. All in all, I can't really complain. Life has given me my share of opportunities. I choose to spend to make me happy. But as others have chimed in, I should save more. In fact I do have a retirement account whereby funds are deducted automatically each paycheck in a 401k account. But alas, it's nowhere near enough for retirement. Hence the van thing to prepare for the eventual downsizing to come.

As a serial spender, I'm there with you. There's some need that's unfulfilled is what I reckon.