Introduction
Money is one of the most complicated topics because it’s never just about numbers: it’s about identity, fear, security, and ego. In this sense, money isn’t a financial tool, but a psychological one too. People don’t overspend because they’re irresponsible. People overspend because they’re emotional. Also, when we’re buying something, we’re not just buying the thing in question; we might be trying to buy a feeling. But while money seems like the perfect shortcut, some things in life you just can’t buy.
That’s all well and good, but how about when you do need a pack of t-shirts? Or maybe you’re into history, and you want the latest Bill O’Reilly book? How can you tell when a purchase is the right one? In this article, I’d like to provide a series of principles that help you spend in a way that creates long-term peace rather than short-term pleasure. Here are the principles that help you do exactly that.
Principle 1: Buy Friction-Reducing Things
The highest-value purchases reduce daily stress, wasted time, and inconvenience. There are endless examples. Some of them include tools that make work smoother, home upgrades that remove annoyances, or systems that simplify routines. Most tools exist to solve a specific problem; you just have to choose the right ones. When in doubt, remember that “removing long-term pain” is better than “adding short-term pleasure”.
Principle 2: Think in Cost-Per-Use, Not Price
“Cheap” items are often more expensive in the long run, so I like to think of cost-per-use as the simplest mental model for spending money wisely. Put simply, cost-per-use is how much money you’re paying every time you use an item. For example, I bought a Kindle Basic on June 25th, 2021, for $86, and I’ve used it every day since. If I do some quick calculations, $86 ÷ 1,630 days = roughly 5 cents per day. That’s the cost-per-use. You don’t need to be a genius to understand that’s exceptionally good value. Not only is using the Kindle cheaper than a sip of coffee, but it’s also given me knowledge and entertainment for almost half a decade.
Principle 3: Buy for Your Real Life, Not Your Ideal Life
Some people fall into the trap of buying things for the life they’d like, rather than the one they already have. When you’re purchasing something for an identity you don’t have, you’re simply wasting your money. The gap between who we are and who we want to be drives most unnecessary purchases. Aspirational buying creates guilt, clutter, and wasted money. If you’re not careful, this can become a never-ending vicious cycle you don’t want to be a part of. So whenever you buy something, develop the discipline of asking: “Is this for who I am today?”
Principle 4: Don’t Buy Status
Buying status is often counterproductive. If it works, you’ll soon find yourself spending money on something new to impress people you don’t like. If it doesn’t work, you’ll come across as someone desperate for attention and emotionally needy. Status fades faster than utility, so never buy status. Trying to signal status through purchases is a psychological trap, and to avoid it, simply buy things as if nobody were watching.
Principle 5: Invest in Health and Daily Quality of Life
Energy matters more than aesthetics. Some things have a high return on investment because they’re related to health. Examples include an ergonomic chair, a comfortable mattress, organic food, or comfortable sneakers. Health is the ultimate form of wealth. This is the case because spending to improve sleep, movement, posture, and nutrition compounds over time. Of course, not every purchase has to be life-changing. But how you time a purchase matters almost as much as what you buy.
Principle 6: Spend Slowly on Big Things, Quickly on Small Things
Waiting before major purchases prevents emotional and regret-driven spending, and speaking from experience, that’s not a position I’d recommend. On the other hand, you don’t want to overthink cheap, useful items because that’s a waste of time and mental energy. So the simple mental model here is to spend slowly on big things (like a house or a car) and quickly on small things (stationery or a new cup).
Principle 7: Own Less, But Better
Having more stuff means more maintenance and more mental clutter. This is one of the worst traps because psychologically, we’re not prepared to get rid of most things around us. We, humans, tend to hold on to things because there are feelings and emotions attached to them. Let me embarrass myself for a moment. Yesterday I found a t-shirt I haven’t worn in years. It belonged to an NBA team I loved… over a decade ago.
The solution is not simple, and reading a bunch of books or articles on this topic won’t help you throw things away. That said, you could try having fewer, higher-quality possessions. This increases satisfaction and makes your possessions feel more intentional. This principle helps you create a cleaner and calmer environment. Ultimately, owning less makes spending itself easier, because you stop buying out of habit and start buying with intention.
All these principles point toward a simple truth: money works best when it supports who you are, not who you’re trying to impress.
Conclusion: Spending as Self-Respect
At the end of the day, the way you spend money is a reflection of how intentionally you want to live. Good spending isn’t about appearing successful, chasing trends, or buying shortcuts to status. It’s about choosing things that make your life lighter, calmer, healthier, and more aligned with who you actually are.
Money should buy you freedom, time, and clarity, not noise, stress, or clutter. When you spend with intention, every purchase becomes a vote for the kind of life you want to build.
Spend with purpose, or spend with regret. The choice is yours every time you open your wallet.
