Reasons We Spend

by Tax Guy - Burlington Accountant on June 10, 2008 Print This Post Print This Post

I was pondering some the dumb purchases I’ve made in my lifetime and what motivated me to make the decision to part with my hard earned dollars.  I had often watched in wonder as other people had expensive “stuff” and wondered why I didn’t have the same.  I guess I began chasing what they had and undertook to increase my income and then proceed to buy more in a way to demonstrate I had the same resources as those people I was admiring.

About 15 years ago I wasn’t getting any closer to this undefined goal and began looking deeper at what the differences between what I was doing and what others were doing.  I then had an epiphany and realized that I was going about it all wrong.  I was perusing conspicuous consumption instead of saving and investing.  The people I was admiring were probably deeply in debt and had little savings.

Changing Habits

The first thing I had to do was to change my attitude.  My issue with money had been a combination of my desire to “keep up with the joneses,” a lack of patience, and power.  Each of these is intertwined but I focused on my lack of patience.  I had to ask myself if I really needed what I wanted to purchase and if it was expensive I forced myself to save for it.  This exercise alone gave me more gratification than the instant gratification from just buying what I wanted.

About The Tax Guy...

Dean Paley CGA CFP is a Burlington accountant and financial planner who services individuals and business owners locally, nationally and internationally. Dean has appeared in the National Post, Toronto Star and Metro News.

To find out more, visit Dean's website Dean Paley CGA CFP or connect via Twitter @DeanPaleyCGACFP.

Print This Post Print This Post

Comments on this entry are closed.

Previous post:

Next post: