\n<\/p>\n
Have you ever made a big purchase that, when somebody asked about it, you made up an excuse or reason why?\u00a0<\/p>\n
I recently attended a conference in New York. A friend joined me, and we both brought our kids. I remember asking him, \u201cHow was the trip over?\u201d He replied that they all flew over first class. My first reaction when he said first class was to think, \u201cThat\u2019s awesome!\u201d But I could tell that he was feeling worried\u2014maybe spending that kind of money was something that people would judge him for.<\/p>\n
It reminded me of when my parents asked about a new car I bought. They were just interested in the make and model. It was a Tesla Model X. What was fascinating is that I didn\u2019t talk about how much I enjoyed the features of the car. (It\u2019s an awesome car!) Because I felt guilty about spending that kind of money, I found myself justifying my purchase to them (even though they didn\u2019t ask). It made sense to buy it, I reasoned with them, since it would save me a lot of money on gas in the long run. They nodded, slightly confused as to why I brought up fuel prices.\u00a0<\/p>\n
It\u2019s not uncommon to feel guilty about spending money<\/a>. And that guilt can even prevent us from taking action. We\u2019ll sometimes think, \u201cShould I even be making this purchase?\u201d This kind of reaction to spending money raises an important question: Why does this happen? Where does our guilt come from?\u00a0<\/p>\n I\u2019ve found that they\u2019re two primary reasons. First, we\u2019re worried about what other people will think of us. We have a fear of being judged, especially for being judged as frivolous spenders who are irresponsible with money.\u00a0<\/p>\n As physicians, there can be additional social pressure to present a minimalist lifestyle. There\u2019s a perception out there that doctors make a lot of money. So we don\u2019t want to come off as greedy or unworthy by presenting a (perceived) outlandish lifestyle.<\/p>\n Have you ever had an experience like this? I know I have and still do. It can affect how I spend my money.\u00a0<\/p>\n The second-most-common reason I\u2019ve seen has to do with what\u2019s called scarcity mindset<\/em>. That\u2019s when a person has a belief that money is finite and, because of that, spending too much could leave them financially vulnerable. Spending, the thinking goes, will leave us less able to spend on other things.\u00a0<\/p>\n This can of course snowball, and pretty soon a person with a scarcity mindset isn\u2019t spending their money on anything for fear of missing out. The irony becomes that they end up not doing much of anything with their money\u2014the opposite of dying with zero. (See Die with Zero <\/em>by Bill Perkins.)\u00a0\u00a0<\/p>\n Scarcity mindset isn\u2019t an \u201call or nothing\u201d thing<\/a>. I think we\u2019ve all experienced it to some degree. That worry of not having enough can cause us to keep a tighter grip on what we have.\u00a0<\/p>\n Regardless of which is the catalyst of our guilt, here\u2019s my question: Are they valid? Should we let them create a sense of guilt in us? Should we allow them to dictate our spending?\u00a0<\/p>\n Traditionally, we trade our time for money. If you\u2019ve spent time with any of the communities here at Passive Income MD, you\u2019ve learned about financial freedom and unlinking your time from money. That\u2019s the goal.<\/p>\n On the way to that goal, most of us still generate income that\u2019s linked to our time. And what\u2019s important to remember is that time is our most precious resource. It\u2019s a limited resource\u2014we only have so much of it.\u00a0<\/p>\n We\u2019re giving up other things to create income when we spend time generating it. So shouldn\u2019t we use that income to create more joy, to create more meaning and purpose in our lives? With this simple thought experiment, it\u2019s become evident that spending should come with joy and not guilt, right?\u00a0<\/p>\n Changing your mindset is one way you can replace that guilty feeling with a sense of joy. Another is by considering how <\/em>you spend your money<\/a>. For me, joyful spending occurs when creating memories of a lifetime. That could be treating myself or others with an experience\u2014a vacation to clear my head and connect personally, a conference to learn and connect professionally, or engaging a hobby to activate a passion. Spending money on things like this brings joy because it\u2019s purposeful. It\u2019s meant to enhance my own self as well as those around me.\u00a0<\/p>\n Intentionality really helps take away guilt and replace it with joy<\/a>. You won\u2019t be coming up with an excuse for a frivolous purchase because the purchase, by definition, won\u2019t be frivolous. It will be aligned with your goals and values\u2014even if it is a new car.\u00a0<\/p>\n When you spend money in alignment with your values, you don\u2019t have to think about it as spending. It\u2019s not money that\u2019s gone. It becomes an investment. You won\u2019t regret spending that money because it will create an amazing experience or contribute to the wellbeing and happiness of you, your friends, and your family.\u00a0<\/p>\n Take playing golf. I used to feel incredibly guilty about how much it costs. But when I reframed my mindset<\/a>, I realized the benefits were like an investment. I get outside. I get a little exercise. I feel good about myself. I get to connect with others. These are experiences that are precious to me, and golf facilitates them. With each major purchase I make, I can frame it as an investment that offers me and my loved ones a return on investment.\u00a0<\/p>\n So if you figure out the values aligned with a purchase and <\/em>the investment benefits, you are spending with purpose. And when you spend with purpose, your guilt will naturally fade. I promise you.\u00a0<\/p>\n As you get used to this practice, I would also encourage you to keep track of your finances. Perhaps on a quarterly basis, do some accounting. Note what you’re moving toward, what you\u2019ve spent your money on, what you can spend to be comfortable, reassess your values, and use these details to form a spending plan<\/a>. That will enhance your ability to spend with purpose and, in turn, to spend with pleasure.\u00a0<\/p>\n Life is way too short to feel guilty about spending money. Instead, invest in yourself and others to make life better. And live a life that aligns with your values and beliefs, whatever they might be. I don\u2019t know about you, but I\u2019m tired of letting other people\u2019s judgement or my own reservations dictate my behaviors and happiness. No more.\u00a0<\/p>\n If the same is true for you, consider joining one of the many communities here at Passive Income MD or attending one of our conferences<\/a>. There, like-minded people connect to work on the mindset shifts and financial planning that can manifest life-changing results.\u00a0<\/p>\n Never forget that the money you have right now\u2026you traded your time for it. So spend it well to fill your time with joy, and don\u2019t ever apologize for it.<\/p>\n Thanks for stopping by today and being one of our readers. Until we see you next, stay inspired to live life on your own terms and financially free.<\/p>\n Peter Kim, MD is the founder of <\/em>Passive Income MD<\/em><\/a>, the creator of <\/em>Passive Real Estate Academy<\/em><\/a>, and offers weekly education through his Monday podcast, the Passive Income MD Podcast. Join our community at the <\/em>Passive Income Doc Facebook Group.<\/em><\/a><\/p>\n<\/div>\nWhat Causes Big-Purchase Guilt?\u00a0<\/h2>\n
Replace Guilt with Joy<\/h2>\n
Spend with Purpose to Spend with Pleasure<\/h2>\n