We are a typical Canadian family on our way to financial independence, and I am sure we will get there. For us, financial independence means we will have enough passive income to cover all our expenses. We already have more than a thousand dollars in passive income, and the amount is growing. We do talk about finances in our family, and we do try to increase our income and regulate our expenses. As a family it is our goal to be financially stable enough to allow us to continue to have a joyful life but without the need to worry about being employed. Here are my wife’s thoughts about shopping habits that I fully share.
Need or Psychology?
What makes us buy things? What makes us believe we absolutely need the things we buy, or are we swept up by a moment or maybe misled by the “everyone has it, so I should, too” rule?
Our financial decisions can be compared to many day-to- day peculiarities, such as airplane waste or hurricanes. I choose to compare it to fashion.
Just recently I learned that the store H&M has over four billion dollars of unsold merchandise, and a friend of mine noted that if consumers chose “value” over “volume,” we would not only save ourselves from fashion disasters but also save money.
When we shop for a new piece of clothing, it often has to do with a new trend or season, or else the idea that we absolutely must have a particular item in our closet. I’ve even bought things similar to those I’ve seen in my friend’s closet. When I watched an episode of Sex and the City for the hundredth time during which Jessica Parker gave a Louis Vuitton bag to her assistant, I immediately wanted one too. I opened my closet recently and realized many of my clothes have been there a very long time, because I carefully wear them. Classic styles always look fashionable; however, I still wanted to throw them all away and just get myself a new wardrobe. I am sure many of you who read this will sympathize with me, whether you are male or female. The million-dollar question is: what makes us do the things we do?
If you read scientific literature about human behavior, you will learn that our actions are consequences of our relationships with our parents or guardians as well as interactions with our surroundings, habits, food, and culture.
As parents, we look at our children and see some behavioral patterns they adopt from living with us, watching us, and copying us.
Is it okay, you ask? Yes, it is. As long we all live happy lives, not bothering our neighbors, not asking for money from the parents, it’s all great.
So what should we do to be independent? How can we make sure we actually have money to spend and yet save for retirement or rainy days? No one has the answer—not your parent, financial adviser, realtor, or anyone else.
Husband’s Words
I am happy to know that happiness in our family is not connected to stuff we buy. We always tend to bide our time and not purchase advertised goods we do not really need. I confess, however, that I still buy jewelry for my wife, because she loves it.
