Financial guidance for financial independence

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Thinking Differently About Spending

Buyer's remorse.  We all know what it is because we've all experienced it at some point in our lives (well, hopefully!).  It's that feeling of guilt that can set in after a sizable purchase.  But why does this occur?  Research will throw deeper ideas such as cognitive dissonance and the paradox of choice out there as explanations, but I tend to think that human beings simply don't like seeing their bank account take a hit.  You've worked hard for that money, so it's only natural to feel sorrow when it departs.

While there are a few tricks out there to help deal with buyer's remorse, I've learned one practice that works best:


That's it.  When evaluating a purchase, set a rule that the purchase will not be made until your passive income can either pay for the item outright or cover the monthly payments.  Then, when pulling the trigger on the purchase, it will most likely feel free or as if someone else has made the purchase for you.  Either way, that buyer's remorse is nipped in the bud and your bank account doesn't take a haymaker.

As a side benefit, this type of spending mentality encourages good savings habits and the motivation to continue to build your passive income streams; both of which will build a solid financial foundation for a more liberating future.