Your Money_ The Missing Manual - J. D. Roth [8]
Practice conscious spending
Because the notion of Enough is so vague, the best way to approach it is to be mindful of your financial habits. The act of consciously choosing how you spend can help you make purchases that are in line with your goals and values.
Ramit Sethi popularized the concept of conscious spending in his book I Will Teach You to Be Rich (Workman Publishing, 2009). The idea is to spend with intent, deliberately deciding where to direct your money instead of spending impulsively. Sethi argues that it's okay to spend $5,000 a year on shoes—if that spending is aligned with your goals and values and you've made a conscious choice to spend this way (as opposed to spending compulsively—see Curbing Compulsive Spending).
If you're new to conscious spending, try asking yourself the following questions:
Did I receive value from this equal to the amount I spent? In other words, did you get your money's worth? You already know that $100 spent on one thing isn't always as good as $100 spent on another. Conscious spending is about striving to get the most bang for your buck.
Is this spending aligned with my goals and values? Conscious spending means prioritizing: putting your money toward the things you love—and cutting costs mercilessly on the things you don't. If you're happy with the coffee at the office, then don't waste your money at Starbucks. But if your extra-hot nonfat caramel latte is the highlight of your day, then buy the latte! Spend only on the things that matter to you.
The box below tells the story of Chris Guillebeau, who has made a lot of unorthodox choices to be sure his spending matches his priorities.
Your Money And Your Life: The Art of Non-Conformity
Chris Guillebeau takes conscious spending to an extreme. At 32, he's defined what's important to him and is willing to make sacrifices to be sure his spending is aligned with his goals and values. One of his ambitions is to visit every country in the world by his 35th birthday. (As of this writing, he's visited 124 of 192 countries, and he's got 3 years to go.)
Travel is expensive, so in order to meet his goal, Guillebeau has made it his top priority. "Some people think I'm crazy," he says. "I don't own a car, so I walk everywhere. I don't even like spending a few bucks to use public transportation. But I spend thousands of dollars to fly all over the world."
By doing without the things that aren't meaningful to him—like a car—Guillebeau can afford the things he's passionate about. To read more about his unconventional life, check out his blog at www.chrisguillebeau.com, and look for his upcoming book, The Art of Non-Conformity (Perigee, 2010).
Reduce clutter
If you have so much Stuff that you need to rent a storage shed, you have more than Enough. If the Stuff leads to clutter that stresses you out, you've passed the peak of the Fulfillment Curve and your added luxuries are bringing you less happiness, not more.
Purging clutter can be a profound experience, but it can be difficult, too: You don't want to toss anything out because you might need it someday, or it has sentimental value, or it may be worth something.
Getting rid of Stuff only hurts for a little bit. Once you've pared your belongings, it's like a weight has been lifted; you feel free. Some people find the process so liberating that they go farther and practice voluntary simplicity, even to the point of moving into a smaller home. For example, Dave Bruno is chronicling his fight against materialism at his website (http://tinyurl.com/100thingchallenge); his goal is to own only 100 personal items.
Tip
Living Green: The Missing Manual suggests lots of great ways to de-clutter your life.
Seek balance
A balanced life is a fulfilling life. To find balance, you have to figure out how much is Enough for you—the point where you're content with what you have and can say "this much, but no more."
Once you define Enough, you gain a sense of freedom. You're no longer caught up in the rat race and have time to pursue your passions. You can