Money is a story.

But money is also an exchangeable commodity, valued by different people in different ways. And time is the wildcard.

Situational spending is a trap that seduces us into forgetting that time passes and debt (or assets) remain.

A couple about to wed might not hesitate to spend $750 on imprinted matchbooks that no one will ever use, but struggle to make the rent payments a few months later. If they were measuring peace of mind, it’s unlikely that they’d choose the matchbooks over rent.

Corporations nickel and dime frontline workers over a $1 raise, but don’t haggle with McKinsey on a $20,000,000 contract.

Instead of going deep into debt for a new car that might raise ones status, that same money could be spent regularly buying a round for friends at the local pub, becoming a local philanthropist, or investing in an asset that might increase professional standing or income.

“Compared to what?” is a powerful question. The right answer might not be, “compared to what I just spent a moment ago, or compared to what my peers are spending…” A more useful alternative could be, “compared to what I want or need to spend money on in the future.”

The situation isn’t in charge, we are.