This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
Personal Finance
Are You An Addicted Consumer?
Much of what we buy is pointless.
Without thinking twice, many of us spend our money on things with no value.
Mindless spending is a societal pandemic. And all of the marketing strategies, advertising, media’s repetitive brainwashing, and consistent introduction of new toys to the market don’t make consuming less any easier.
We’re supposed to upgrade our 1-year-old $1,000 smartphones each year. Thank you “Next Plan”.
I am not a pure minimalist, but I do appreciate the practice. Taking a second look, you’ll realize many of the things available to buy in our society are superfluous.
It’s healthy, fun, and okay to spend money on things for mere enjoyment, but to what cost?
The average American household possesses considerable consumer debt due to their consumption problem. We willingly allow our consumption habits to compromise our financial well-being.
Think of Spending In Terms Of Time LOSThe average hourly wage is $11.19. If you buy a new iPhone at an estimated price tag of $1,000, you’ll need to work 89.37 hours to pay for that phone.
Which takes me to my next point, how many hours do you figure you’ll need to work to pay for the rest of it (e.g., clothes, eating out, entertainment, technology, cars, houses, decor, and travel)?
All of these expenditures are fine if you can afford them. But what if you can’t afford these expenditures yet still buy them?
Maybe you’re the average household and bring in 60k-80k a year, which amounts to earning $28.85-$38.46 per hour. If you have the average household debt ($93,000–$145,000 based on debt.org and CNBC numbers), you’ll need to work 5,026 hours to pay off that debt on a $60,000 salary.
Realistically, people pay ~$1,233 each month on debt (according to LendingTree), which equates to spending 10 years of your life paying for $145,000 worth of debt (all of this money could be compounding in your investments instead – a much wiser choice). You might have more debt than this if you fake own a house with an existing mortgage.
By thinking about how you spend your money in terms of hours you work, you might consider spending less than you earn:
Question of The Day
Do you want to give up years of your life paying for stuff you bought years ago? I don’t.
Budgeting Will Save The Day
If you need some serious financial accountability in your life and would like to see where your money goes, utilize a budgeting app. I am a religious budget app user. Budgeting apps will automatically document your transactions and income and place them into the appropriate categories. I prefer to manually add each transaction as I’m exceptionally hands-on with my finances. Either way, a budgeting app has elevated my financial well-being.
Moral of the Story
Logging each money transaction will ensure you remain cognizant of every single penny you bring in and spend. Over time, habitually reviewing your budget and how much you’re spending in each category will help decrease your spending in several areas – saving you thousands yearly.
Don’t worry if you’re a consumption addict; most people are. Want to know a four-step remedy?
Budget.
Implement self-control.
Be grateful for what you have now.
Don’t compare your stuff with other people’s stuff; this is why many people are in debt in the first place. They got to keep up with their neighbor; it’s a trap.
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.