In today’s world, there are just too many adorable, tempting things vying for our attention. From the latest fashion trends and gadgets to cozy home decor and indulgent treats — it’s easy to feel overwhelmed and want everything. But the truth is, you simply can’t have it all. To truly enjoy what you own and maintain financial health, learning how to spend money wisely, focusing on what truly matters, is crucial.
Who You Are Reflects in How You Spend
Spending money isn’t just a mechanical act of swiping a card or entering a PIN — it’s an extension of who you are, your habits, values, and mindset.
Some people spend impulsively, driven by fleeting desires — living for the moment with a “carpe diem” attitude, buying whatever catches their eye. Others plan meticulously, saving and allocating every dollar with clear priorities in mind.
How you manage money mirrors your discipline, lifestyle, and approach to life itself. It can reveal your relationship with material things, emotional wellbeing, and even your self-respect.
Discovering the Art of Smart Spending: Insights from Joanna Taddam
Recently, I came across an insightful book titled “There Are Too Many Cute Things in the World: I Can’t Have It All” by French psychologist and addiction specialist Joanna Taddam.
Joanna’s story is relatable — she used to be a compulsive shopper, constantly chasing the thrill of buying new things. Yet, over time, she realized that endless shopping didn’t bring her happiness or comfort. Instead, it increased her stress and emotional tension.
This realization pushed her to study the psychology behind spending and develop practical strategies for spending smartly — not just to save money, but to nurture a more peaceful and fulfilling life.
Here are some of her key lessons that I found incredibly helpful:
Step 1: Start by Decluttering — Make Peace with What You Already Have
“Every time I say goodbye to an item, I feel lighter and freer,” Joanna says.
Learning to spend wisely begins with an honest assessment of your current possessions. By regularly decluttering, you create a cleaner living space and gain clarity on what you truly need versus what was just an impulse buy.
This practice also helps identify “money traps” — those items you’ve paid for but never used. Once you realize where your money went to waste, you can avoid repeating the same mistakes when shopping again.
The Closet Cleanse: A Powerful Example
Joanna shares a fascinating insight: “We typically wear only 20% of the clothes in our wardrobe about 80% of the time.”
Here’s her method to refresh the closet:
- Take out all your clothes, shoes, and accessories and spread them out.
- Evaluate each piece based on:
- Condition (Is it too worn or damaged?)
- Fit and comfort (Does it flatter you and feel good to wear?)
- Usage (Have you worn it in the last year?)
- Sort the items into three boxes:
- “To sell”
- “To donate”
- “To throw away”
The goal is to let go of the unnecessary without guilt. It’s not about attachment but about asking yourself honestly: Do I need this?
Step 2: Quality Over Quantity — Invest in What Truly Lasts
One of Joanna’s strongest points is about quality versus quantity.
Cheap items might seem like a bargain, but poor quality means they wear out quickly and need frequent replacement. Over time, you might spend more money buying several low-quality items than you would on one well-made product.
A Simple Clothing Example
Buying a $30 shirt that wears out after a few washes might cost you $90 over time if you replace it three times. In contrast, spending $100 on a durable, well-made shirt means fewer purchases and better satisfaction.
Moreover, when we buy cheap items, we tend not to care for them, while more expensive, well-loved pieces are treated with respect and last longer.
This mindset applies not only to clothing but also to gadgets, home essentials, and everyday products.
Joanna advises avoiding impulsive buys just because something is cheap. Instead, within your budget, aim for fewer but higher-quality purchases that add real value.
Step 3: Make a Spending Plan — Budget With Purpose
Smart spending requires planning. Without a clear plan, it’s easy to lose track and overspend on things that don’t truly serve you.
Whether you’re a student, professional, or freelancer, you can estimate your monthly or yearly income and allocate budgets accordingly.
Ask yourself:
- How much do I typically spend on essentials like skincare or food?
- Should I save for larger purchases instead of buying impulsively?
- What spending categories align with my values and goals?
My Personal Budgeting Approach
- Divide income into categories: daily living expenses, clothing/accessories, self-improvement, savings/investments.
- Set quarterly budgets for each category.
- List key purchases within each category — items that are necessary or require larger spending.
For example, with a monthly income of 10,000 RMB and 15% allocated to clothing, the quarterly budget would be 4,500 RMB.
Step 4: Align Your Budget With Your Needs and Priorities
Before shopping, revisit your decluttered closet. Identify what you genuinely need to replace or add.
For clothing, prioritize versatile basics like trench coats, denim jackets, or leather jackets that match multiple outfits.
Suppose you allocate 1,000 RMB to a trench coat, recognizing its utility and durability.
You might also reserve part of your budget for splurge items you truly love, like ballet flats for 2,000 RMB. The quarterly budget system allows flexibility — it prevents overspending in one month and encourages mindful accumulation.
Step 5: Leave Room for Flexibility and Fun
After earmarking funds for essentials and splurges, consider setting aside a small “fun fund” for spontaneous buys — trendy pieces or experimental styles that add joy but don’t necessarily have to be classic staples.
This balanced approach prevents feelings of deprivation while maintaining overall financial discipline.
Why Learning to Spend Wisely Matters
The world offers an endless stream of delightful things, but chasing them all leads to clutter, stress, and financial strain.
By knowing yourself, organizing what you have, investing in quality, budgeting with purpose, and allowing room for joy, you create a healthier, happier relationship with money.
Spending wisely isn’t about restriction; it’s about freedom — freedom to enjoy what you own, reduce waste, and focus on what truly brings value to your life.