SPEND Less Than You Make

This post is the first in a series on “spend less than you make”. See also the articles on you, less, and make.

“Spend less than you make.” Such a simple yet complex phrase. But what does it really mean? This series of posts will take an in-depth look at just what it means to spend less than you make.

What is to spend less than you make? For some, it is the core of their essence, what drives them when they wake up, what they think about when they go to bed. It is what stops them in the store, and what keeps them going to work. For others, it is a catch-phrase, a cliche, a cop-out. It is a mere formality, an obvious understatement, a meaningless phrase.

At face value, the phrase is self explanatory. Spend (as in purchase) less (as in, not more) than you make (your income). What more could be said?

Spending is Necessary

How often do you spend money? Twice a day? Once every two days? What we don’t often realize is that spending money is an essential part of our life. We take it for granted so often that we don’t often stop to think about just how often we spend money. We shop for groceries at least once a week. We stop to get a latte in the morning. We order something online. We might not exchange cash every day, but perhaps everyday we drive our vehicle, “spending” a little bit of our purchased gas. We “spend” money every day that we eat. Everything we do costs money. Do you pay for water? Did you wash your hands today?

The simple reality is: Life Costs Money.

Now, there are some alternatives. You can see just how rarely you spend your money, and just how little you have to spend. You can grow your own vegetables, hunt your own meat, and live without electricity in a forest. Or, you can accept that eating, sleeping, and breathing is going to cost you money – and that’s okay. You’re going to spend money, so get used to it.

The good news is that you only have to spend money on the essentials. You need enough money for food, clothing, and shelter. In fact, you don’t even need to have an excess of food, an abundance of clothing, or the most spectacular of shelter. In fact, many people get by below the poverty line: so the amount of money you have to spend is surprisingly low.

Unfortunately, there’s something about human nature that enjoys filling voids. So if we have an excess of money, or time, or space, we fill it with stuff. There will always be something to spend your money on: that I can guarantee you. This is not necessary spending, this is just opportunities to separate you from your money.

To Spend

Spending is a verb.

It is an action word. It requires movement, energy, an expenditure of time and effort. Spending does not happen on its own (for the most part. even automatic withdrawals had to be set up with an inital motion. then inertia just keeps it going. see: auto renew; scams).

So what? If you don’t want to spend, don’t go through the spending motions. Don’t go to the store. Don’t bring money. Don’t get easy access to credit. Again, human nature tells us that we’re going to take the path of least resistance. If it is more difficult for you to spend money than it is to not spend money, then you’re going to spend money. If the payoff (the shopper’s high, the convenience, the toy) is greater than the cost (the credit card bill, the interest, the debt), then you’re going to spend. You’re going to take action.

Stop the motivation, stop the action, stop the spending. Stop the reward or stop the pay off, you stop the motivation. You strengthen (or become more aware) of the cost, or the risk, the less likely you’ll take action. If you are unable to spend (no credit, no cash, no access), then you won’t.

Spending is a verb.

You had to do something to spend your money. It did not spend itself. Your bills were quite comfortable in your wallet, they did not choose to leave on their own. You picked them. You exchanged them. Your debit card prefers the dark. Your credit card feels uncomfortable in public. You forced them out, into the open air, and used them.

Your purchases did not leap off the shelf at you, you leaped towards your purchases.

Spending is Neutral

It is neither inherently good, nor evil. To spend is not wrong. It is not morally correct to spend. Spending can be both positive and negative – it is dependent on its context.

A purchase is merely a purchase, until it is put into context. Buying a pair of shoes might be an act of joy, a once in a lifetime opportunity, or an expression of self confidence. In this regard, it is commendable – perhaps even admirable. However, if the purchase of those same shoes comes at the cost of being unable to feed one’s children, then it is reprehensible, even morally incorrect.

Purchasing toothbrushes for the poor, donating a tithe to a church, or investing in carbon offset credits is probably good; buying alcohol instead of food for your kids or funding weapons of mass destruction is probably not.

Many purchases are morally ambiguous, and depend on your world view. Regardless, one cannot claim that any particular purchase is either unequivocally good or evil. Spending money on gold plated iPhones might seem ludicrous to some, and reasonable to others. At the same time, choosing not to purchase a similar item (a house, a car) cannot be said to be unequivocally wrong either.

What Does This Mean?

• Think About Your Purchases

So much of what we buy is unnecessary or habitual. Stop for a second. Think about cost. Think about need. Think about inertia, and momentum, and why.

• Don’t Judge Others

Your purchases are your decision. You are more than entitled to your own opinion, but be careful when you make blanket statements and include moral complaints. You are allowed to say that you wouldn’t dare spend money on a brand new vehicle – but don’t claim that anyone who would is wrong.

• Spending Less Than You Make Is Possible

Not only is it possible, its far easier than you might imagine. All you have to do is realize that the majority of your spending is not essential. It might feel like it is, you might not understand how some people live without the data plan on their cell phone, but I assure you – it is possible.

Where Do I Go From Here?

Do you even know where you’re spending money? Why not start tracking your spending with a spending record? Have you thought about how much money you should be spending on debt repayment? Or how much you should spend on housing?

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