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One of the reasons we don’t save as much money as we like is because all the things we think we like cost money, so by saving money, we feel as if we’re not getting the things we want. We can feel deprived and depressed as a result.
We think we want to buy a new outfit to impress someone who probably won’t even notice us. We think we want to travel the world, but now we won’t be able to do it because instead we have to save.
But that’s not thinking about it clearly. If we think about it, lots of the best times we have ever had cost no money at all, and some of the things we really, really, really want also don’t cost money.
One of the best examples is saving the earth. We all want to do that, don’t we? We all want to make sure that the beauty of this planet is here for our children to enjoy – and here’s the good news: spending money doesn’t help that happen.
Where’s that plastic packaging going to go? Where did all the raw materials come from? Can we be sure that a forest wasn’t chopped down for what we just bought?
Even seemingly “eco” purchases can be bad for the environment. You might think that buying a new environmentally-friendly and efficient car is good for the planet, and it is better than a bad one, but around 60% of the environmental cost of a car is in it’s manufacture, not in running it, so if you have an old car, it’s probably better for the planet that you keep it.
And it will definitely be better for your bank account than buying a new one. In fact, you should probably sell your old car and use the bus.
You see, what’s good for your bank account is often good for the planet. The thing that most clogs up the planet is the world of consumers always wanting more things, new things, expensive things, clean, shiny things wrapped in layers of plastic, shipped around the world, and sold for too much money.
If you really want this to stop, the best way is to stop spending, and put your money into your savings account instead. If you really want it to stop faster, you could spend even less, and move the money from your savings account to your investment account, and find companies, investment managers or exchange traded funds (ETFs) that only invest in ways that don’t damage the planet, or do less harm in other ways.
You could learn about the United Nations’ Sustainable Development Goals and Principles for Responsible Investing, and you could save your money to help them happen.
And if you don’t really care about the planet (you bad person), you could tell people that you do, and it will give you an excuse to spend less money, go out less often, and they won’t think you’re just being cheap. They might think you’re a really nice person instead – and it won’t have cost you a penny.
Other ways to save face while saving money:
It’s really trendy, involves owning very little, and being super-cool.
You could stop eating a few days a month (money saved), refuse to buy expensive clothes (money saved) and spend time meditating (no cost).
Getting drunk can cost you more than the money on alcohol; it can cost you the money you spend when you’re drunk and not thinking, and it can cost the money you spend the next day to feel better. Look for “soberistas” who know how to stop drinking with style.
If you like to donate to worthy causes, but want to save the money instead, donating your time will give the charity the help they need, while also signalling to your friends why you’re not spending time (and money) with them.
Featured in the FINANCIAL TIMES, and the DAILY TELEGRAPH, our MISSION is to help create millions of millionaires. We want people all over the world to use our simple tools to save emergency funds, turn those into investment plans and create the habit that will help enrich their lives.
If you’re interested in financial literacy, please also look at our new project www.maiawards.org