Do you have items you save for or “splurge” on—items or experiences you’re willing to spend a little extra on? Maybe it’s a designer bag or the latest tech gadget, a luxury car, a trip, or even rare wines. Do you have the item or experience in your mind? Now, imagine someone judging you for spending money on the item. A recent experience reminded me how quickly people label and call out how someone spends their money and what they consider silly or wasteful. It got me thinking: who gets to decide what’s ridiculous, wasteful, or worth it? Life experiences and mindsets can play a big role in the psychology of spending and what’s “worth it.”
The Value of Personal Priorities
Over the years, I have worked with many women and a few men, and how much each client was comfortable and willing to spend on clothes varied greatly. What one person felt was “worth the price” might be too much for another. The things we spend our money on can reflect our values, aspirations, and even our identity. For example, a designer bag might not be “just a bag” but can represent quality, craftsmanship, and a sense of achievement. Similarly, someone who invests in a high-end watch or car might value performance, status, or a deep appreciation for engineering. Your life experiences plays a big role in the psychology of how and when you spend your money. Everyone’s life is different so they have different motivations for what they’re willing to spend their money on, just as everyone has different spending habits.
The Psychology Behind Spending
For many, how you spend your money can be tied to emotion, identity, judgment, social validation, and more. You buy items not just because you need or use them but for how they make you feel or look. For example, a designer pair of shoes, a new set of golf clubs, or a first-class seat might make someone feel empowered or successful, while a gourmet meal or a great bottle of bourbon might offer an experience of indulgence and joy. How you spend your money can be a way to express yourself, celebrate milestones, or indulge in something that brings you joy. What do you save money for on or “splurge” on?
High-quality items with a higher ticket price may seem like a waste to one person, but they can be a perfectly reasonable investment to another. We all justify what we spend money on based on our values and experiences. Here is a secret. You get to decide what’s worth it and you don’t have to listen to other peoples opinions.
The Culture of Judgment
Many may think spending money on luxury items, like designer clothing or a trip, is wasteful, while to others, it’s justified as a reward for hard work or a much-needed break. There will always be people who project their values onto others when judging spending habits and offering options for what’s worthy and what’s not. The reality is that everyone has different priorities, and what matters most is that your spending aligns with our values. It brings me joy to travel and see new places and return to my favorites spots. Some of my clients love to travel as well and other value high quality clothes that make them feel empowered.
Breaking the Cycle
In today’s world of social media and the “keeping up with the Joneses” mentality, it can be easy for many to judge someone for how and what they spend their money on. Instead of judging, it’s important to acknowledge that everyone’s financial situation and priorities are different. What one person chooses to spend their money on, even if it’s different from what you would spend your money on, doesn’t make their choice any less valid. You get to decide what’s worth it.
What if instead of judging, we celebrated and cheered on people’s decisions to invest or spend money on themselves with something that brings them joy and satisfaction rather than diminishing it?
In the end, whether it’s a designer watch, a vintage car, a bag, a trip, or wine, what matters is that the purchase is meaningful to you. In an ideal world, it would be fantastic if we stopped judging others for their spending choices and instead focused on the values and happiness those choices bring into their lives. Remember, you decide what’s worth it, and you don’t need other people’s permission to put yourself on the list. What are you splurging on?