- Spending money on things is a double-edged sword.
On one hand, you wanna buy things because
you deserve to spend your money
however you want right now.
Because you earned that money,
and you earned the right to buy those things.
On the other hand, if you keep buying everything you want,
then eventually the clutter just piles up in the basement,
storage closets, or even a storage unit you need
because your house is too full.
This is all because you didn't think
the purchase through at the very beginning
of the buying process.
Don't feel bad though, because we've all done it.
Heck, I've bought this and I haven't used it in a while.
It's a tripod you freaks, get your mind out of the gutter.
It's extremely easy to buy something,
but it's a lot more work to
actually declutter your life to get rid of
it later down the line.
In this video, we're going back to the
very beginning of your buying process.
Before you even make the purchase.
To give you some things to think about
before you actually commit to spending
the money, and bringing those things into your life.
If you use these tactics, then you'll
have less to declutter in the future,
and save more money in the process.
Just a little disclaimer, these tactics
should not be used when deciding whether
or not you should bring new people into your life.
People have feelings.
Hey I'm Jarrad, from Debt Free Blueprint
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Before we get into these tactics,
I want to make something very clear.
I am not suggesting that you never spend money
on anything, I'm not against it at all.
I actually encourage you to spend money on things.
But there seems to be a mini epidemic
when it comes to this consumer mindset
we've all become accustomed to.
And if we're not careful,
it's going to leave us with no money,
and houses, and apartments full of objects
that end up a bigger pain in the (bleep) than
they're actually worth.
I don't promote less spending,
I promote more intentional and thoughtful spending.
Let's get into it right meow.
It's so difficult for us to think about
the future value of our money.
Our brains aren't naturally wired to think like that.
We think of our future self as a somewhat
separate person, so saving for the future
can feel like giving money away to
a stranger rather than giving it to ourselves.
Because of this, we just buy buy buy,
for the here and now, without thinking about
what impact this is going to have on our future selves.
What's the future value after twenty years
if you invested $100?
At a 7% return rate, that $100 you decided
not to spend has the potential to be worth $386.
After thirty years, that $100 could be worth $761.
Before buying something you should
run through this future value of
money scenario in your head.
Is buying that $100 set of pet rock speakers
actually worth $300 to $700 in future value terms?
The cost of opportunity.
What are you giving up to purchase this?
Maybe you have Christmas gifts to save up for.
Maybe that money would be better served
going towards your mortgage or even
a future home purchase.
One of the easiest things to think about
where this money should go, is your
three to six month emergency fund.
There have been so many studies by
how most people under save.
By buying one thing, you're actually
making two decisions.
You're making the choice to buy something,
and you're making a choice not to spend
the money on something else you probably should be.
Before you buy anything, you need to run it through
this opportunity cost filter in your head
to decide if this money could be better served
somewhere else in your life.
The cost of storing items in your environment.
Walk around your house or apartment at some point today.
Open all of the closets, all of the drawers,
and even look around your basement.
Mentally take note of the stuff and things
that have been sitting around in those places
for months or even years without being touched.
If you have quite a few things,
then this little exercise should give you some
anxiety, and that's a good thing.
There are actually two different storage
costs for all things you purchase up until this point.
Or, will purchase at some point in the future.
The first type of storage cost to you
is the physical cost.
Everything you purchase needs its own piece
of real estate in the place you currently live.
We lose touch with how much we actually have
because we stuff it all away in closets
and backrooms, where we very rarely go.
In this case, out of sight out of mind
doesn't make it physically go away.
You've essentially turned your home into
a very very big expensive storage unit.
Just because you have space in your
current environment, doesn't mean you need
to fill that space with some sort of object.
There is no rule that says that.
It's a choice our consumer brains make
to convince ourselves to buy (bleep) that
we don't really need.
When you purchase something,
ask yourself if you're okay with it
taking up physical space in your life.
A little tactic I like to use to help me
from accumulating too much
is by implementing a one-for-one, or one-for-two,
or even one-for-three rule.
In the case of clothes, I buy a new shirt,
then I am obligated to remove one, two, or three
items of clothes from my life.
It helps me to either reduce those things
in my life, or ensure that I stay at the same level
of clothes that I've become accustomed to
up until this point.
The second type of storage cost to you
is the mental cost.
If you walk around your house,
and notice things starting to build up,
then what kind of feeling do you get?
Is it a good one? Is it a positive one?
I highly doubt it.
And that right there is a cost.
It's not easily associate with a cost
because it's not a physical object.
If the thought or sight of it gives
you anxiety, or you regret the purchase,
then that will slowly eat away at the back of your mind.
I have some wood flooring in my house
left over from the previous owner.
For whatever reason, I told them they could leave it.
Because it was nice, and I thought it had some value.
Fast forward three years, and the flooring
is still sitting there.
And every time I see it, I regret allowing
them to leave it.
I wish I would of thought about
not only the physical clutter that decision would have,
but the mental clutter and the annoyance
it would have on me in the future.
Since then, I've gotten one hundred times better
at taking the mental costs into account.
Speaking of wood flooring being left in my house,
another cost you should think about
to save money and keep the clutter out
of your life is the removal cost.
Now that you've accumulated more things
than you know what to do with,
at some point it's going to need to be taken away
from where you currently live.
If you're a hoarder, then this type of
thing doesn't even register to you.
Yes you are correct, I'm judging you
if you're a hoarder, and so is everyone
else around you.
Just like the wood flooring left in my house,
it takes time and energy to get rid of it.
Your valuable time and energy.
Even if you decide to just keep everything
forever then think about the burden you're
putting on the people who have to
take care of it all once you pass away.
When you pass away your family's gonna wanna grieve,
so the last thing anyone wants to have
to think about is how in the world are we going to
sort through and remove all of Uncle Randy's stuff.
It's literally going to take months.
I personally don't want to put that burden
on my sisters and force them to
inherit those bad habits that I couldn't
control while I was alive.
Another reason to think about removal cost
is picking up and moving somewhere
you'll be happier or to take a pay increase
will be ten times more difficult
if you have all this stuff you have to remove.
You start to feel stuck where you're currently living.
You literally have to take into account
removing everything from your house.
Yes, you have to do that anyways,
but it makes it even worse when you have way too much.
Put your next purchase through the removal
cost filter in your head.
To double check whether or not it's worth buying,
or if you should just save the money
and keep the clutter low within your life.
Everything we just talked about
is one of the main reasons I'm a huge fan of minimalism.
Because minimalism forces you to think
about every single one of these things
to help you make better choices when it comes to your money.
And what you decided to bring into your life.
Once again I am not saying to never buy anything.
But what I am encouraging you to do
is be a little bit more thoughtful and intentional
with the things that you buy and bring into your life.
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I'll see you in the next one friends, adios.