I’m reading a book* about our relationship with money. As I read, I realise that a lot of what we learn about money management suggests that tracking our spending will help us ‘tell our money where to go.’
We all know that if we look after the pennies, the pounds will look after themselves. Right?
Was what you bought really worth it?
Whilst establishing (and sticking to) a budget works for a great many people, the authors offer a fresh perspective. They argue that, if you first work out your proper hourly rate of pay, you’ll then be able to consider how many hours of work (translated into ‘life energy’) you expended in order to buy something. Then you can ask if what you bought was really worth it.
When you look at your spending in this way, it takes on a whole new perspective. It might even impact on the choices you make about how you spend your hard-earned cash.
For example, if you earn £10 per hour, that £5 glossy magazine has effectively cost you half an hour of ‘life energy’. When you know this, you can then ask:
“Did I receive fulfilment, satisfaction and value in proportion to life energy spent?”
If not, then you might think twice about purchasing a similar item again next time you’re presented with the opportunity.
Why we spend
In the book, we read that US organisation Debtors Anonymous asserts that we go into debt to avoid feelings, especially feelings of deprivation. Like other addictions, debt allows us to deny pain, sorrow, loss, anger, loneliness and despair. I would say that you are more likely to be struggling with debt – or on a very tight budget – if your spending doesn’t align with your values or bring you real satisfaction.
So, I’m curious.
I’m going to conduct an experiment: a ‘Life Energy (Expenditure) Experiment.’ I’ll do this for the whole of next month.
My ‘life energy experiment’
Rather than tracking my spending or recording ££’s spent, I’m going to track what I buy and ask what value, fulfilment or satisfaction I derived from these purchases. I don’t have any particular plans to buy anything in November (no Christmas shopping for me – see my earlier post on gifting here). So, I’ll be curious to see how the month unfolds. I’ll be posting my purchases on Twitter, along with their related ‘fulfilment factor’.
Will you join me? What will we notice? How might our future buying habits change by conducting this real-life experiment?
Follow the story using #LifeEnergyExperiment
And let me know how you get on!
*”Your Money or Your Life: 9 Steps to Transforming Your Relationship with Money and Achieving Financial Independence: Revised and Updated for the 21st Century” by Vicki Robin, Joe Dominguez, Monique Tilford.
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