The Price Of Things We Don’t Need
Last week, I came across an article that was discussing the new meaning we had for the good life. Gone were the base factors of roofs over our head, a bit of money in our pockets and food for the table. The good life has come to mean so much more. Then I read an article while researching yesterday’s post about how eating healthily is falling by the wayside in order to make way for other expenses, most of them lifestyle. Which got me thinking about all the things we spend money on, that we don’t need, and what it might cost us in the end.
Subscriptions
Pay TV. How on earth did we, as consumers, ever fall for the suggestion that we should pay for what’s on television? The recent Rugby World Cup is an example. The free-to-air coverage was so dismal, it was an encouragement to start paying for the games. In order to make a profit, they delayed the broadcast so as to allow 20 minute ad breaks. And it works- providing a low quality service is likely to make anyone genuinely interested in a sporting code, or world movies, or half hour shows that you can watch within an hour convert to paying for television. Yet at $60 a month upwards, that could equate to your internet costs (where you could stream a lot of the programs anyway) and will be using for a variety of reasons outside of entertainment.
Memberships
I’m a member at the local gym. I don’t resent spending the money, it’s a choice that I want to make. I also, however, travel about 30 weekends a year and, while away, I like to maintain my exercise routine. Which means, on top of spending $70 a month on my membership, I could spend an extra $30 a week on gyms while I’m travelling. It equates to more than my electricity bill which is, without a doubt, necessity over convenience. And while it’s money I’m happy to spend, a greater appreciation that it is a luxury as opposed to a right could allow me a better approach to my finances. If, for instance, I took that monthly spend out of my discretionary spending (as opposed to pretending it was up there with my grocery bill), I would be allowing room in my budget for true necessities like the right food or healthcare costs.
Eating Out
I love eating out. It gives you something to do, a reason to get out of the house,a nice space to catch up with friends. But I spend $20- $40 every time I do it, an amount that could quite easily go towards paying off my credit card at a much faster rate, or could be invested in superannuation. And if I’m spending money on eating out while skimping in areas that are more important, it’s time to rethink my approach. Have friends round to your place, make yourself a picnic and go eat it in a local park, have a coffee out on your back step as opposed to a cafe. They have all the same value, without the attending costs. Trial a month of eating in, and see how much money you can save.
The Price Of Things We Don’t Need
Cigarettes. A go on the pokies. A new pair of shoes, The latest bestseller. These are our choices, and we are free to make them. And living life thinking solely about big picture spending (mortgage, superannuation, investment) would be miserable. There’s no call for extremes but if, perhaps, we re-evaluated our spending in terms of necessity and luxury, we would be surprised how much of our budget goes towards the latter. And if we can perhaps choose one or two of the luxuries and save the rest of our money or put it towards necessities, then we can have the good life, both now and later.
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