Making decisions on how to use our money is extremely difficult and money decisions can have a huge effect on our overall wellbeing, not to mention our goals. When considering whether to spend, save, or give; it’s helpful to remember that there are really only four things money can buy. In spite of the seemingly innumerous choices we can make, money can really only buy enjoyment today, enjoyment in the future, stability today or stability in the future. That’s it!
There’s a Lot Money Can’t Buy
When we remember money can only buy these four things, it instantly reminds us of what money can’t buy. It can’t buy happiness, people’s affections, respect, etc. If we can’t link a purchase to a meaningful change in stability or enjoyment, we’re likely throwing money at something that just can’t be bought.
Enjoyment and Stability Work Together
All of “the four things” are crucial and work together to achieve overall financial wellbeing. A stable life without enjoyment would just be…joyless. While a lack of stability makes it impossible to truly enjoy even the very best things in life. What’s more, a person who’s sacrificing their future security and enjoyment for their present life, is harming their overall financial wellbeing, even though they may feel better in the moment. Managing money, like managing our time, is a never-ending balancing act.
Are Your Money Decisions Taking You Where You Want to go?
“The four things” can also help us quickly assess why we’re considering spending, saving, or giving. The following questions can help clarify whether a money decision aligns with the life we want.
- “Am I doing this for stability or enjoyment?”
- “If not for stability or enjoyment, then why?
- “Will this add meaningful stability or enjoyment?”
- “Would another option add more stability or enjoyment, maybe for less money?”
- “Will this purchase harm my future stability or enjoyment?”
By remembering that money can only buy enjoyment or stability—whether now or in the future—we can stay mindful about balancing these four areas. This awareness helps us fund what truly matters in our short-term day to day, while catching ourselves when our decisions stray from the life we want to build in the long-term. With this approach, we can enhance our financial well-being and make steady, meaningful progress toward our most important goals."
