Personal Finance Challenge #5: Know Your PPP’s (Personal Purchasing Preferences)

Everyone has a PPP whether you realize it or not. Even the most ascetic monk has a PPP, whether they deny it or not. Everyone has a PPP.

Now it’s time to figure out what YOUR PPP is! 😉

My PPP is knowledge. I spend more money on books then just about any other spending category. I have a huge library of books that I can only imagine the lifetime cost of. And I don’t plan on stopping anytime soon.

Everyone has a PPP, and it is this diversity that makes the world go round…

Some people LOVE food and will spend untold amounts on eating out at different restaurants, or spending money on fine food, kitchen appliances, and cooking, and baking accessories. Up to and including a whole library of cookbooks.

Some people LOVE clothes so they will spend tons of money on clothes and shoes, and everything of that nature.

Some people love to PARTY, and so they will spend money on going out and socializing with other people.

Some people love a certain HOBBY, and will spend lots of time and money and energy on it.

Some people love to PLAY, and will spend tons of money on sports equipment, memberships, and the like.

Some people love to ACHIEVE certain things, and they will spend money on achieving their goal, whatever it may be.

The point is that whoever you are, you have a certain, very personal preference. A preference for buying things that will enhance your enjoyment of whatever it is you like to enjoy.

Once you have this self knowledge you can start incorporating it into your overall personal finance strategy.

For instance, Chris Guillebeau knows that one of his main personal preferences is to travel. So he makes spending money on travel a priority and sacrifices in some other areas (such as buying a car), so that he can do what he loves to do.

On the flip side, perhaps you start thinking about your own PPP’s, and you realize that they are so out of control they are ruining the rest of your life. Perhaps it’s time you come to the realization that you need to spend a little less on your PPP’s and invest a little time and money elsewhere (your family for instance).

In either case, coming to a better understanding of yourself will lead to a much better financial future. Especially when you start incorporating this self knowledge into your financial planning.

Know your PPP. Love it. And incorporate it into your personal finance plan. Thank me later. 😉

This is our 5th challenge in The Personal Finance Challenge Series…

Comments

  1. I like this! This is really practical advise. Most people aren’t honest about their PPP. The good thing is if someone really wants to know what their preference is they can just check their bank account to see where their money is going. Mint.com has a really good program that monitors spending.

    Thanks for the great post! Keep it up!

    • Hi Ralph,

      Thanks for commenting! Glad you like it. Yep, it’s not too hard to figure it out. You just have to be able to face it head on, and realize it for what it is.

      Cheers,
      Jeremy