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Careful vs. Careless Spending – What’s the Balance?

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As I discuss often, it’s not about how much money you make but how intentional you are about spending and saving habits. People tend to punish themselves if they spend money on what could be deemed as “unnecessary items.” Whether that’s their favorite latte from a coffee spot on the weekends or a fun family vacation, some people feel wasteful, regretful, or guilty for spending money on things they really appreciate but don’t contribute to the bottom line regarding savings. If I’ve said it once, I’ll say it a million times: don’t feel bad about spending money on things you enjoy, value, and care about! 

Memories and experiences are priceless, and as a family financial planner, I will be the last to tell you to skip them to save a few bucks. Spending money on things you love is not the problem, and you can still meet all your financial goals. The problem that many people don’t realize is that they have unconscious, careless spending habits. 

Unconscious spending is when you spend without acknowledging the habits/patterns you’re in; ultimately, this will lead you to sacrifice financial flexibility in the areas that matter most. On the flip side, intentional spending—on the things and experiences you value—can bring fulfillment without financial regret. So, where’s the balance?

The Trap of Careless Spending

Careless spending often comes in small, seemingly insignificant amounts. Here are some common examples:

  • Paying extra for parking out of convenience rather than necessity
  • Buying snacks from vending machines simply out of habit
  • Paying for insurance plans that don’t match your actual needs
  • Keeping for streaming services or cable packages you rarely use or have multiple subscriptions to. 

These expenditures aren’t inherently bad, but they add up quickly when they’re habitual and mindless. Worse, they don’t bring any real joy or long-term value to your life. These are the truly unnecessary items in our lives. 

When we don’t pay attention to where our money is going, we create financial opportunity costs without realizing it. It’s not just about the lost dollars—it’s about the time and opportunities those dollars represent.

The Case for Intentional Spending

Here’s the key distinction: splurging isn’t the problem—mindless spending is. Spending on things that truly matter to you can be one of the most rewarding aspects of financial planning.

Take my father, for example. He always valued having a nice car. It wasn’t about status—it was about the enjoyment he got from driving something he loved and appreciated. Similarly, investing in a vacation home in Maine wasn’t just an expense; it was a decision rooted in creating meaningful family experiences. These are examples of intentional spending—where money aligns with values and priorities. For him, $5 lattes weren’t a priority (if they even were available to him), nor were fine dining experiences, so those were areas where careless spending didn’t happen. It’s only careless spending if you spending on things you could care less about. 

A different, more immediate example: The kids wanted to watch iRobot on Friday movie night, and we saw it was free on one of the streaming services. We clicked on it, and it did not ask us for a login.  My wife asked me if I subscribed to it, and I said no.  We neither remember signing up for it, but somehow, we had it. We were on the cutting edge of cord-cutting over a decade ago and have let the $5 per month stuff add back up.

The Right Plan Allows for Both

A strong financial plan isn’t about cutting out all non-essential spending. It’s about awareness and optimization. When you minimize unintentional expenses, you create room for the things that truly bring you happiness—whether that’s travel, a hobby, or a dream car.

The reality is, if you’re tracking your money and allocating it wisely, you don’t have to feel guilty about the occasional indulgence. But when you let careless spending take control, you’re robbing yourself of the opportunity to use your resources in ways that will help your and your family’s lives.

The Ultimate Financial Mistake: Being Unaware – Careless Spending

As a financial planner, I’ve seen the difference that financial awareness makes. Some people feel constantly restricted because their spending isn’t aligned with their goals, while others enjoy financial freedom because they’re intentional with their money.

At the end of the day, the ultimate financial mistake isn’t the occasional splurge—it’s not knowing where your money is going in the first place. When you become aware of your spending habits and align them with your priorities, you’ll have a sense of financial confidence and freedom that you may not have thought possible. 

Want to learn more about how to strike the right balance? Let’s talk. 

I aim to help families make financial decisions that maximize joy while securing their future. When done right, financial planning isn’t about deprivation but empowering the right actions.

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