Spending money on things

There is no limit to how much you can spend on and what you can spend on. Recently a friend bought a house for 2 crore and from their balcony you can see an apartment that sells for 4 crore. It is not to say that we will always want more, but it is to be said that there will always be something more expensive than what you have, generally speaking.

So the natural question to ask is, ‘should I not buy anything?’, ‘how much should I spend on something?’. Recently I metup with a group and one person was in their 60s. He is a successful businessman and he lives a simple life. His framework for spending was this:

• Are you buying X because of peer pressure?

• Can you afford the purchase and maintanence of X during its life?

• Does it affect your monthly giving to church or charity?

If your answer to those questions are No-Yes-No respectively, you can buy that thing. Even if one of the answers is not the right one, rethink!

Do you think there are somethings for which this framework may not apply? or some additional rule needs to be added to this?