Wealth Hack Series: How You Can Buy Anything You Want (Prioritized Spending)

Let me teach you how you can spend money lavishly, in a guilt-free fashion.

However before we get to the enjoyable part, we need to go into geek mode to understand some basics economics. (Don’t let that put you off, because whatever you discover after that would definitely be worth it… I promise!)

Unlimited Wants, Limited Resources

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Scarcity – This is probably the first word you would ever come across in economics class. For every other concept you learn in economics class is fundamentally an attempt to fix the problem of scarcity.

Basically, the concept of scarcity states that we have unlimited wants in a world with limited resources. That’s clearly going to be a problem!

E.g. you have 3 hungry children, but only 2 pieces of bread… what should you do? Do you split it equally? Do you give all to the hungriest child? Do you make them compete for it?

Thus, economics is the study of methods to allocate resources more effectively.  And what do all these resource allocation methods have to do with guilt free spending? Everything!

We All Have To Make Spending Choices

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While I don’t claim to subscribe to the scarcity mentality, I do acknowledge the realities of scarcity. It is a fact that most of us have to face day to day. You want to buy many things, but you only have a limited amount of salary.

As a result, you are forced to make spending decisions. We all are.

For some of us, these decisions land us in massive debts. Yet for some others, they are able to buy all the luxury goods they want, and still have enough to meet their needs. How is that possible?

Is it truly possible to have the cake and eat it as well?

You Can Buy Whatever You Want

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Yes, it’s true. You really can really go out and buy whatever you want. You want that Chanel bag? Sure, why not? Or do you still want that new Rolex watch even though you already have a Submariner and an Explorer at home? Go ahead! No one is going to stop you or tell you what do buy.

After all, none of us have the right to stand between a man and his horological passions, or douse a fashionista’s desire for her designer bags.

But there’s a catch…

Since we all have limited amounts of money (scarcity), you are only allowed to spend lavishly on the things you value… while budgeting tightly for everything else that you don’t.

For Example: I really love to travel and go on new adventures. However unlike the typical Singaporean, I’m not really a big fan of food. I find that no matter how much I eat, it just doesn’t translate onto me (literally).

There are months that I spend over $700 on good food, while there are some other months that my food budget never made it past the $400 mark. (Disclaimer: I did not go on a diet; I just went about eating the standard hawker fare.)

I realized at the end of the day, if I could save $300 on my food expense every month, I could potentially use the $3,600 to…

  • Travel to Europe once a year
  • Take 3 – 4 short trips to nearby destinations (Bali, Taiwan, Gold Coast)
  • Go on scuba diving trips 5 – 6 times
  • Sky dive repeatedly!

Prioritized Spending

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Honestly… if swapping a plate of glorified chicken chop from Aston’s ($7.90) for a plate of hawker centre chicken rice ($3.50) gives me the chance to go overseas more times in a year, I’ll gladly do it. It’s simply a matter of prioritizing.

Of course, this is just an example of my priorities. Some people take their gastronomic delights seriously. And others would rather spend the money buying branded bags than pay to jump out from a perfectly working airplane. We all have our preferences and we should be able to spending accordingly without feeling guilty about it.

So go ahead and feel free to spend whatever you want, on whatever you like… as long as you remember to budget tightly for everything else that is!

And this is how anyone can make use of prioritized spending to enjoy spending lavishly in a guilt-free manner!

Featured Image Credits: zimbio.com

Enjoyed this article?

Click here to read our previous article in our Wealth Hack Series: Why You Should Buy High Quality Luxury Goods (Cost Per Use)

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