3140: A Different Way of Looking at Spending by J. Money of Budgets Are Sexy on Mindful Consumption

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[00:00:59] With our self-check. Just simply online on AOK.de. From love to health. AOK+. It's a minimalist Monday edition of Optimal Finance Daily. A Different Way of Looking at Spending by J Money of BudgetsAreSexy.com.

[00:01:20] I've been trying something new lately where every time I have to spend money on something, whether a need or a want, I try to look at it as I'm supporting the place my money is going to versus I'm spending my hard-earned money there. The effect to my wallet usually remains the same, but what I've noticed is that I'm starting to appreciate these transactions a lot more. And not only that, but in some cases, even enjoying it.

[00:01:47] A great example of this was the other week when it was time to pay dues at our local coin club. The membership fees are literally only like $12 a year or a dollar a month. But we were starting a new lifetime membership option where for a one-time fee of $150, you could actually become a member for life. Now, $12 and $150 are drastically different paying attention to price alone.

[00:02:15] But what I noticed was that a number of people started whipping out their checkbooks right there on the spot for these new memberships. The same people who graciously donate coins to our monthly door prizes or who volunteer their time and expertise to present to us throughout the year. To them, it wasn't about the cost, but more about the love of the hobby and wanting to support it however they can. That night, four people became lifetime members on the spot, including myself.

[00:02:45] Of course, later I ran the numbers to see where the break-even point was because we're nerds like that. And it's 12 and a half years. But whether I attend the meetings for that long or not, I felt proud to support something I believe in too. I doubt that would have happened had I not consciously changed my thinking. This works in other areas too. $5 for coffee? Your baristas thank you for giving them a job. $75 for groceries?

[00:03:13] Way to help the cashiers, managers, night stalkers, and even cleaning crews. $100 for insurance? Thanks for protecting my family and finances, insurance company. $875 per paycheck for taxes? God bless America and our roads, schools, libraries, outreach programs, and the men and women who protect our laws and safety every day. In all cases, they're still normal expenses.

[00:03:42] But thinking of them in terms of how they provide for others or society on top of it is a pretty powerful and often overlooked feeling. Not unlike the concept of voting with your dollars by shopping at the places, stores, or services that match your values and staying away from those which do not. It's spending, but it's also very much supporting. This new mentality has also affected the way I give back too.

[00:04:11] I started thinking about all the other hobbies or organizations I could be supporting more just like with the coin club and came up with three of them right off the bat. Number one, the Sundara Fund. I've loved this organization since the moment I learned of it two years ago. They recycle gently used soaps that the hospitality industry throws away every single day and reuses them to prevent disease and death among kids in poverty deep countries.

[00:04:41] And realize the last time I donated to them was almost just as long ago. Number two, 516 Project. A newer project launched by a friend of mine who goes around fixing up old and broken down homes of those who can't afford to have them fix themselves. I gave to them the day they launched and then promptly forgot.

[00:05:03] And number three, then there's our very own Rockstar Community Fund, where I initially funded it with $500 to get it going and help spread the good around our community. But I've since stopped contributing financially purely out of forgetfulness. And this is my own project. Of course, I spend gobs of time towards it, which is worth much more than any donation or else it wouldn't exist. But financially speaking, specifically, I was slacking.

[00:05:32] I went back to that same lifetime membership concept and decided to give $20 per month to each of these organizations. All very much new expenses to me. However, when looked at in the light of support, shines much differently. And I'm actually pretty embarrassed that I didn't think of it earlier. Of course, I should have made it automatic to make sure my money was going where I wanted it to. That's personal finance 101.

[00:06:00] Despite the disconnect, though, it's already feeling worlds better now. And I'm already looking for more places to pledge my support to so I can make it an even $100 per month across the board. We'll see what the future holds with this new thought experiment. But I wanted to share it with you while it was hot on the brain and my encouragement levels sky high. Maybe you already think of your money as voting dollars and supporting your community. I don't know.

[00:06:27] But the more ways we can feel empowered by our spending, the better. Give it a shot today while you're out running your errands or picking up food or paying the bills, etc. Then come back and let us know how it felt. Think about everyone you're supporting with each transaction you make and see if it changes anything. You're already going to spend the money. Might as well feel better about it.

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[00:09:20] When I was getting out of debt, I was hypercritical of every dollar spent. Any money I spent on needs or wants was less money that I could throw at my high-interest debt. And I looked at my debt as an emergency. It felt like my hair was on fire. So questioning every purchase was beneficial in that season of my financial journey. It allowed me to get out of 30 grand of debt in 11 months.

[00:09:46] It also allowed me to reach Coast Fi status, build an incredible cash position, and create a lifestyle that allows me to easily cover my expenses with minimal work. However, I'm in a new season of life now. I'm finally in the financial position where I don't have to worry about money so much. And so being hypercritical over every dollar spent isn't necessary anymore. But it's a hard habit to break.

[00:10:14] And that's a wrap for another Monday show. Have a great rest of your day and start to your week. And I'll be back tomorrow where optimal life awaits.