AMERICANS HAVE AN UNHEALTHY OBSESSION WITH PLEASURE SPENDING
I’m deep into a financial literacy project with one of the largest universities in the world. Our mission is to teach college students what they need to know about money. As we research how students are taught about money and what the results of that teachings has been, I’ve found one major concept to be absent — the quest for pleasure.
I spend a tremendous amount of time thinking about why people in our society are so financially ill-prepared for nearly every moment they encounter. Debt levels are sky-high, consumer spending (as opposed to saving) is through the roof and retirement account balances induce tears (if they weren’t so laughable).
One of the primary causes of our economic strife is our unhealthy obsession with pleasure derived from spending. But we don’t call it pleasure. We call it entertainment, leisure, luxury, blowing off steam, vacation or even fun money. Not only do we get a hit from the things and experiences we purchase, but we feel pleasure in the purchase itself. The situation really spins out of control when we no longer feel pleasure from our normal purchase patterns, so we crank it up and exacerbate the problem by spending even more.
Pleasure’s consequences don’t discriminate. It can crush your financial life if you make $30,000 per year, just as it can if you make $3 million per year.
We spend when we shouldn’t because “shouldn’t” seems less grave than “can’t.”
When I was in grade school, there was a very rigorous process of being granted the ability to purchase dessert. Upon eating the main course, and three sides, a lunch monitor would allow you to purchase a cookie for 10 cents. Should I have eaten my entire school lunch? Yes. Was I forced to eat my entire school lunch prior to being allowed to purchase a cookie? Yes. Experiencing plea- sure before pleasure was earned simply wasn’t an option. Boy, have things changed. My 20s and early 30s are a good example of freedom gone awry. It was a period in which I ignored my future reality with a childish and myopic approach to spending. I had no financial past (debt), yet I didn’t completely acknowledge my financial future because most of my funds were being consumed for my financial present. Like so many other Americans, my mis prior itiza ti on of pleasure had me on a path to financial failure. I don’t know why I woke up or how I woke up, but I’m sure glad I did.
Don’t get me wrong, I still love creating pleasure from spending. But I only do it once I’ve taken care of business. I eat my whole lunch tray before I purchase the cookie. There’s actually more pleasure in making a purchase that won’t negatively impact my desired financial outcome.
Runners often talk about something called runner’s high. It does seem a bit crazy that a person can feel actual pleasure from exercising vigorously, but apparently you can. The pleasure is delivered via a rush of endorphins and endocannabinoids in the midst of the workout. You want pleasure and you need exercise. Voila! You get both — when you do it the right way.
The same is true for your financial life. You can achieve pleasure — deeply satisfying pleasure — by taking care of business first.
Previously, if I had $10 to spend, I’d spend $9.50 and hope I could rub the last 50 cents together to put into savings. That rarely, if ever, worked. Now if I have $10, I fund my real goals first, which might take me down to $7, but then I spend that $7 without guilt or reservation. And by the way, I don’t even care that I only got to spend $7 vs. $9.50. I was guessing at my $9.50 budget anyway.
Spending money is pleasureful. Spending money without reservation because you’ve taken care of business first is the sweetest pleasure.
The next time you are feeling tempted to seek pleasure through spending, fund your goals first and experience a pleasure you didn’t know existed.
There’s actually more pleasure in making a purchase that won’t negatively impact my desired financial outcome.