Money Gossip: How People Spend Money Differently - Laugh With Us Blog (2024)

Money Gossip: How People Spend Money Differently - Laugh With Us Blog (1)

Money. It’s such a tricky little thing isn’t it? I can recall countless conversations with people complaining about how other people spend their money. Sometimes there is concern, pity, or jealousy in their voices. What is the same each and every time is the fact that someone else isn’t spending their money the way the person speaking would.

Guys. People all spend money differently, because we love different things! It’s that simple.

One mistake people make is to assume that others are spending just like they are, but then in addition are doing or buying that THING that one finds extravagant or unnecessary. When in truth there are probably lots of ways you’re spending money that other people aren’t. Perspective!

For example, I have a friend who always looks amazing! She finds pleasure in spending money on clothes, jewelry, make-up, hair, nails, massages, etc.

Another friend of mine has all the newest tech of everything she owns. TV, computer, games, cameras–all brand new and top of the line.

One friend of mine prides herself on her home. She keeps it immaculately clean and decorated. Her paint, decor, furniture and even landscaping–everything is just so, and she dreams about getting the next thing to make her home better.

Another example is my crafty friend. When it comes to crafts she is queen. She spends her free time creating and buying (And honey that stuff ain’t cheap no matter how many sales you find!) all manner of supplies for her creations.

I can think of people who love to collect antiques, guns, bikes, books. That’s where they spend their money.

Then there’s me. When I have free time, I’m Googling the next place I can explore. I love to travel and see new things and experience places for myself. I dream and save for the next place I’ll get to visit. I’ve even built a business that funds and pays me for my travels. How cool is that?

Here’s the thing. I’ll use me for an example. Yes, I love to travel, and I put lots of energy into that, because I love it. But I don’t spend much money on shopping. I don’t get my nails done. My TV weighed 500 pounds until 3 years ago when we could no longer read the closed caption on it. Our computer monitor is 17 years old. I’m really surprised it keeps working! Ha ha! People come to my home and think I’ve just moved in because there is nothing on my walls. I do not craft. Instead I’d much rather save my money and go on a trip!

But when people see me going on a great trip they automatically assume I’m spending money on all the things they spend money on, and that I have this thing extra that they don’t have, and I get that, “Wow! That must be nice!” attitude.

It would be like me looking at my friend’s brand new house remodel and rolling my eyes and saying, “Wow that must be nice!” If the having the latest in home decor was that important to me, then I would make different choices. I’d forget that next trip and save money for the remodel. I didn’t mind driving an old van, but when it quit running well, then spending money on a new one became more important than traveling until I got it paid off. You see?

Instead of looking down our noses at people who have things we don’t or do things we don’t, we need to be happy for them! Seriously, it seems like the American attitude has become, “Poor me. I don’t have that thing my friend on Facebook has.” We are so focused inward. “Rejoice with those who rejoice.” That’s in there too! But mainly we need to be thankful for what we have. We have so much!

Be content with the financial choices you make. Enjoy the blessings God has given you, but remember to be happy for others too. And if you wish you could get your nails done twice a week, then give up your Starbucks and get your nails done, but don’t begrudge someone else their great nails. For crying out loud!

And sometimes I just have to get things off my chest. Ha ha! This may sound like a rant, but in truth it’s what I tell myself. Specifically when I look around my house and wish it were cleaner and prettier like so-and-sos, I have to remind myself that I make my choices, and I tell myself to be happy with them. It’s not just you. It’s so ME! 🙂

Money Gossip: How People Spend Money Differently - Laugh With Us Blog (2)

I’ve had this conversation with so many people that have stopped and said, “That’s true. I haven’t really thought about it that way,” that I hoped it would bless you too!

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Money Gossip: How People Spend Money Differently - Laugh With Us Blog (3)

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Money Gossip: How People Spend Money Differently - Laugh With Us Blog (2024)

FAQs

How to spend money on Ramit Sethi? ›

Conversation
  1. Fixed Costs Should be roughly 50-60% of your take home (after tax) pay. This includes everything like rent, mortgage, groceries, any debt you are paying off, etc. ...
  2. Savings 5-10% of your take home pay.
  3. Investments 5-10% (although I'd love it to be higher) of your take home pay.
Nov 22, 2023

What do Americans spend most of their money on? ›

Average American household expenses

According to the BLS survey, the largest expenditures were housing and transportation, which comprised 26 percent and 13 percent of people's pay, respectively. Another big spending category was food, to which 10 percent was devoted.

How can knowing your money dial change the way you think about spending? ›

Money dials are a simple way to determine what you think is important versus what's actually important. They're the main things you're willing to spend money on — and the things that make you happiest. They're also a great indicator of why people make the decisions they do, particularly in terms of their finances.

What are Ramit's 10 money rules? ›

'How To Get Rich' Host Ramit Sethi: 10 Money Rules I Always...
  • Always Have a Cash Emergency Fund Worth 1 Year of Expenses. ...
  • Save 10% and Invest 20% of Your Gross Annual Income. ...
  • Pay in Full for Large Expenses. ...
  • Never Question Spending Money On Specific Categories. ...
  • Opt for Business Class on Flights Over 4 Hours.
Mar 13, 2024

What is the 50 30 20 rule? ›

The 50-30-20 rule recommends putting 50% of your money toward needs, 30% toward wants, and 20% toward savings. The savings category also includes money you will need to realize your future goals.

What is the golden rule for spending money? ›

The rule is simple: spend less than you earn. The basic idea behind the Golden Rule of Spending is that you should always spend less than you earn. This means that you should only spend what you make in income, and you should be careful to budget your money in a way that allows you to save and invest for the future.

What is the 70 money rule? ›

THE 70% BUDGET RULE

You take your monthly take-home income and divide it by 70%, 20%, and 10%. You divvy up the percentages as so: 70% is for monthly expenses (anything you spend money on). 20% goes into savings, unless you have pressing debt (see below for my definition), in which case it goes toward debt first.

What is the 20 10 rule money? ›

The 20/10 rule of thumb is a budgeting technique that can be an effective way to keep your debt under control. It says your total debt shouldn't equal more than 20% of your annual income, and that your monthly debt payments shouldn't be more than 10% of your monthly income.

What do Americans waste money on the most? ›

Instead, it's an opportunity to take a step back and recognize where you may be wasting money on unnecessary expenses and determine how to ditch those habits.
  1. Unused Subscriptions or Memberships. ...
  2. Letting Food Go to Waste. ...
  3. Paying More for Convenience. ...
  4. Minimum Credit Card Payments & Unnecessary Bank Fees.
Feb 8, 2022

What is the biggest expense for Americans? ›

What Are the Main Household Expenses?
  • Housing: 33.3%
  • Transportation: 16.8%
  • Food: 12.8%
  • Personal insurance and pensions: 12%
  • Health care: 8%
  • Entertainment: 4.7%
  • Other expenditures: 4.1%
  • Cash contributions: 3.8%
Apr 5, 2024

Which race spends the most in America? ›

In 2022, housing required the highest amount of consumer expenditure across all races, with Asian individuals spending the most. Additionally, Asian individuals spent more on personal insurance and pensions, as well as education than any other race.

How does money change a person? ›

In particular, if you're not careful, money may start to change your identity or sense of self. Having a lot of money can influence the way you think about yourself. It can change your sense of morality, and it can even have an impact on your relationships with other people.

How do you know if money controls you? ›

If you're starting to feel isolated from your friends, family, workplace or career, or like you don't have input into decisions about money or your future, these are clear signs that something isn't right.

How do you look at money differently? ›

Master your money mindset
  1. Step 1: Reflect on your financial perspective. ...
  2. Step 2: Adopt a positive money mindset. ...
  3. Step 3: Shift your mindset to save money. ...
  4. Step 4: Monitor your spending. ...
  5. Step 5: Commit to changing your money habits.

What are Ramit Sethi's fixed costs? ›

Sethi said that fixed costs should account for approximately 50% to 60% of your take-home pay. These include things like rent or mortgage payments, utilities, car payments, gas and insurance. These costs usually do not fluctuate each month.

How to budget Ramit Sethi? ›

With Sethi's conscious spending plan, you categorize your current spending into four categories:
  1. Fixed costs: Rent, bills.
  2. Important investments: Retirement, emergency savings.
  3. Savings goals: Down payment or other major purchase.
  4. Guilt-free spending: Dining out, entertainment.
Mar 13, 2024

How much should I spend on guilt-free spending? ›

Guilt-Free Spending (20-35%): Here's the fun part. This is for the nights out, the Netflix subscription, or whatever else makes you happy. The trick is to make sure you're spending on purpose.

How do you spend money judiciously? ›

Here are some ways to manage your money wisely:
  1. Create a budget: Making a budget is the first and the most important step of money management. ...
  2. Save first, spend later: ...
  3. Set financial goals: ...
  4. Start investing early: ...
  5. Avoid debt: ...
  6. Save Early: ...
  7. Ensure protection against emergencies:

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