I had a conundrum of deciding whether to have a ball-out, spending spree weekend in Vegas versus the 100% opposite of party-hardying with camping, and being at peace and quiet and one with nature.
I was emotionally torn by both choices because I equally enjoy both.
On the one hand, Vegas, lots of fun raging with friends, pool parties, hotel suites, night clubs, the works.
Now, on the other hand, camping, also lots of fun with friends. Relaxed, low-key but the much more affordable option compared to the former. Obviously not as “luxurious” as pool parties and night clubs. But enjoying the fresh air and starry nights of nature and healthy, wholesome hiking and other outdoorsy activities.
Hrm…. What to choose?
Neither choice is wrong.
There being also a third option to do neither but… that’s boring.
The fourth option to do both which defeats the purpose of this blog post in helping you make one financial decision over another.
Hence…
Afer some time to mull over either choice and careful consideration we ended up deciding to opt out of Vegas ☹️👎 And yes to camping 👍☺️
And with this being a blog on personal finance and personal development, we will discuss WHY we chose one over the other.
Here’s our thought process that led us to our decision.
And the following tips can also be applied to pretty much any other financial decisions, big or small, that you may come across.
1) Does it fit our budget? Was it planned for?
I think it’s safe to say, we’ve made an impulse purchase one or twice or 5 times in our lives. And I’ll be the first to admit that I am guilty of this.
My younger self , in my early 20’s, as a new grad enjoying my first pay check would in a heart beat said “Yes!” to an invite like this. (And if you’re in this situation, it is not wrong! ) And my initial thought today, was still Hell Yes! Who wouldn’t want to have fun?
It is so easy to splurge and to spend money on a whim. Heck, that’s what credit cards are for? I can just pay it later, right?! 😅 (This way of thinking can’t be more wrong but we’ll rant about credit cards more another time and how to use them the right way).
But now, I’m closer to my early 30’s, a different situation financially and a different place in life as compared to my 20’s, logic set in as we thought more about it and we ran the numbers.
And after a bit of research and calculations, a mere 2 nights and 2 days stay would cost nearly $1500 minimum to $2000 USD for this particular weekend Vegas trip!! Egad! That’s like a whole 2 weeks pay or even a whole months paycheck for some. This might be chump change for some but if you’re just an average Joe like myself that is a lot of money.
On the flip side, of course, this would have been okay if we had budgeted and planned for it in advance. But #1 it was last minute and #2, the obvious, it was unplanned.
So Tip #1: ask yourself , “does it fit your budget? Was it planned for?”
If either answer is No then maybe your answer should be no also.
2) Ask yourself “Does this align with my values? Does it align with my goals?”
Unlike most Financial YouTubers and other “financial guru’s” recommending against spending $5 lattes everyday at Starbucks, author Ramit Sethi explains it perfectly that your daily single origin Peruvian pourover is actually okay. It’s only wrong when you don’t budget and set aside for the things you do enjoy where it becomes irresponsible.
Whether it be setting a budget for a Louis Vuitton Purse, or a budget for your daily caramel frappucino, or a budget for a weekend trip to Vegas, planning is key.
According to Ramit’s book, “I Will Teach You to be Rich”, budgets are set in place so that we use money as a tool to spend on the things we do care about and to spend our hard earned money on the things we do value.
For Vince and I, our current goals and values include saving money for a future home, saving money for retirement and investments, saving money for a future family, and saving money for a future wedding.
Therefore, the following choice was hard to justify. And it would take us that much more longer to attain our other bigger goals.
Ask yourself, do you want to win one small battle or win the war? What’s your end game? Take a step back and look at the bigger picture.
3) Don’t feel bad for saying NO.
“Setting boundaries are for respecting yourself . Not to offend others”- an inspirational quote from Bossbabe.inc via Instagram.
Your friends, if they are true friends, will still be there for you even if you turn them down.
People will also respect you more for sticking to your values. If they don’t respect your decision then it’s probably a party you shouldn’t attend in the first place or other relationship that might need to be weaned off.
Do what’s right for you. And if you’re making a choice you don’t feel 100% gung-ho about , then the answer is also probably “No.”
4) There’s always an alternative.
Weigh out the pro’s and cons to each financial decision and weigh out the possible opportunity costs.
Ask yourself “what am I gaining and/or what am I missing out on if I choose this over that?”
There are many ways to still enjoy yourself while also being financially responsible, if you just get creative. And just remember that more opportunities will and do come around eventually.
We hope these pointers and tip help guide you in making your next financial decision , big or small, with confidence.