In my 20s, I used to visit designer shops a lot. During those visits, I usually bought clothes (I still have some of those items and they still fit me, since the more expensive brands have much higher quality than fast fashion, so it’s good for sustainability), bags, and shoes, of course. Over the years, I gave away or donated many of the bags and shoes I paid so much for. Every time I bought something luxurious, I felt fantastic. That feeling lasted until evening, when it evaporated as quickly as it had arrived.
Soon enough, I needed another fix, so I kept on spending on things I had nowhere to wear. Every time I earned extra money, instead of investing it wisely, I paid off my credit cards or bought things I didn’t need.
Of course, I was desperately trying to fill in the happiness void with my shopping addiction, but no amount of shopping could possibly subsidise my unhappiness. A much better investment would have been to travel, study, or just stay home and read while waiting for my investments to compound.
Social norms, aided by social media culture, corporations, and governments, push us to spend what we don’t have, persuading us that more and bigger equals happiness.
In reality, if anyone expands their lifestyle on credit, that comes with a lot of stress and pressure to pay off the debts and loans. From my experience, I can definitely say that financial strains don’t bring much happiness. The more money we spend on things that don’t matter or don’t have long-lasting value, the less we have left for travelling, pursuing dreams, taking time off to enjoy life, or retiring early.
Everyone’s time on this planet is finite, and allocating that time to making other people wealthy while at the same time living an unhappy, anxious, and stressful life shouldn’t be perceived as the optimal solution. With reduced financial needs, lifestyle changes can unfold organically. If the need to pay off credit cards and loans diminishes, you will have extra money to invest, build an emergency stash and focus your financial resources and your energy on what is essential for you.
Of course, everyone says that money doesn’t bring happiness. However, I think this saying is highly misleading. Money gives freedom, and that, in itself, is an equivalent of happiness for many. For me, the hidden meaning of that saying is that the race to keep up with social and cultural pressures often leads to an inflated lifestyle that doesn’t bring happiness.
However, the changes that reduce budgeting should be organic. Otherwise, if we restrict ourselves too much and too soon, it may just create a yo-yo effect (think ineffective dieting) and send us on a crazy shopping spree, maxing out our credit cards.
In my case, a slow, organic change is best. I’m pretty excited to experiment with how far I can push myself and still be happy, not feeling deprived in any way, while living my best life.
PS. What makes me happy and gets my heart racing is checking my Vanguard account and seeing how much I’ve invested and how much the market has helped my portfolio grow. I’ve become geeky like that; what can I do 🙂
PS. I’m made by Made by Dyslexia, so expect small typos and big thinking.
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