Here is what happens. You get paid on Friday and then by the next Friday you have nothing left. You think to yourself, ‘Where did all my money go?’ If you’re like most of us, you spend way more than you need to. Do you know why?
For three main reasons:
1. Bills and Obligations
3. Emotional spending (or because we want to)
I won’t say too much about bills and obligations because a lot of the time you can’t do much about them. You have to have a home, you have to eat and stay warm and you have to drive.
That being said, however, there are ways to lower your cost of living. When your insurance policies come up for renewal, shop around and get comparison quotes. You could easily lower your insurance costs. You can make sure that you’re not wasting energy… make sure your thermostat is 78 in the summer or 68 in the winter. Change your filters, get energy efficient light bulbs, cover your water heater with a water heater insulation kit. Use coupons when you buy food, buy things on sale, etc… There are hundreds of ways of reducing your costs for bills and obligations. Look for websites that offer free tips on how to lower your costs.
The second reason people spend is because they pay for convenience. It is so much more convenient to stop at the specialty food store and pick up dinner and bring it home, than it is to go home and start cooking. It’s easier to drop off the laundry at the cleaners than do it yourself. It’s easier to pay the higher prices at the fancy grocery store one block away than at the dumpy cheaper store 2 miles away.
A whole industry has been thriving for a long time now in the US based on convenience. We all say to ourselves that we know it costs a bit more, but it’s worth it because it’s so convenient.
The trouble is that now ‘everything’ we do or buy has that ‘convenience’ factor to it, so naturally, we just simply pay the higher price and don’t think too much about it.
The third reason we have no money left is that we buy things we don’t need to. Coffee is the perfect example. In the 70’s you could go to any restaurant or cafeteria and pay $.25 for a cup of coffee (or less). It was good coffee, too. Slowly but surely, coffee has been upscaled to the point where it is absurdly expensive, but we don’t even think about it anymore. We routinely pay $3.25 + tax for a cup of coffee. What we are buying is not really coffee, though, but an ambiance: an earth tone colored break from our hectic day where we hear funky music and shell out the big bucks to be a bit upscale for a few minutes. That’s fine, but the problem is the cumulative effect of many such purchases. If you buy three such coffees a week for a year (52 weeks x (3 x 3.25)) = $507.00 a year on just coffee. If it was really just the coffee you wanted, you could, of course, buy the coffee beans at the grocery store and make it yourself at a fraction of the price. But, as I said earlier, it’s because we want to and it is convenient that we buy it at the upscale coffee place. Not to unduly single out coffee , there are many such things that we buy which are exorbitantly expensive and we buy them simply because we want to. Here is another such example. We go to the mall, stumble across a fancy soap store, walk in to explore and sure enough, we walk out with some really nice smelling hand soaps at $5.00 a bottle. If we had gone to the grocery store and bought a bar of soap, it would have cost us $.75. What’s the difference? Well, they both smell nice, they both do a good job cleaning our hands, but the grocery store isn’t as pretty as the mall store, and we don’t get to feel upscale as much as at the store in the mall.
Here is yet another example. When you buy skin care cream, you could easily buy it at the local drugstore for $2.75 or thereabouts. However, when you walk through the mall you find a beautiful store with fancy skin creams from Europe. They smell really nice, they feel nice on your skin, and a beautiful young thing at the register tells you she uses it all the time and just loves it! Bingo. You buy the fancy skin cream. But you’ve paid now around $20.00 for skin cream. Almost 10 times the price you could have paid had you bought the skin cream at the local drugstore.
My point is that we spend for convenience and because we want to.
Why do we want to? Because for a few minutes while we are in the beautiful stores with the upscale products, we somehow feel like we belong to a different world; it makes us feel ‘special’ and it ‘lifts’ us out of the ordinary for just a few minutes. It is an emotional purchase.
This is all wonderful and good, but the problem is that there is a really high economic cost that we have to bear for this emotional luxury. What I suggest you do instead, is buy most of the products you need at the non-upscale place, pay the much lower price and instead of allowing yourself to be tempted to go near the upscale stores, do something else. Call up a friend, meet at the park and go for a walk. Ride your bicycle. Go visit the zoo. Stay at home and write a short story. Play with your children. Go visit your kids in college. Take up a sport like tennis. Walk along the beach. Go visit a nursing home and make friends with some of the elderly who are lonely. Go to the gym. Learn a new hobby. Take a class at the community college in something you’ve always wanted to learn, like cooking or painting. Take up gardening.
There are thousands of options for activities that cost very little, that will uplift you in ways that the upscale coffee shop or the upscale cosmetic store simply cannot. What you will find is that you will be radiant from the inside out and you won’t have to buy anything to make you look that way. You will have achieved what you really want.
The bottom line is be aware of why you are spending. Only when you recognize it will you be able to change it.
- Ex-state narcotics agent pleads guilty to accepting drug money
- Qatar Airline Passenger Begs Co-Fliers For Money, Delaying Flight
- GOP Fear Loss of Koch Network Money Could Hurt Party in November
- Report: Democratic Super PAC's Midterm Efforts Boosted by 'Dark Money'
- Prop. 6 promises to save money at the pump, but what does it do to local road projects?
- AOC to Bank Execs: Should More Have Gone to Jail for Financial Crisis?
- Money will continue to migrate to cyclicals from high quality names: Ridham Desai, Morgan Stanley India
- Printing money: 10 of the richest book deals of all time
- Dark money lurks at the heart of our political crisis
- Prasant Bhusan demands investigation into 6500 Crore money transfer to Reliance Companies from Singapore
- SIT on Black money submits first report
- Free Money for Trade Creditors: How to Exercise Your Rights and Get Paid Under Section 503(b)(9)
|Embryo/Where Have All the People Gone (check at Amazon)||0.0|
|Where Have All the People Gone? (check at Amazon)||0.0|
|Where Have All the People Gone (check at Amazon)||0.0|
|Where Have All the Dolphins Gone [VHS] (check at Amazon)||0.0|
|500 Miles / Where Have All the Flowers Gone [import 45] (check at Amazon)||0.0|
|Where Have All The Merrymakers Gone? [LP] (check at Amazon)||0.0|
|Where Have All The Flowers Gone: The Songs of Pete Seeger (check at Amazon)||0.0|
|Where Have All the Cowboys Gone / Hush Hush Hush (check at Amazon)||0.0|
|Where Have All The Merrymakers Gone? (check at Amazon)||0.0|
|Where Have All The Flowers Gone Pt. 1 (check at Amazon)||0.0|
|Where Have All the Flowers Gone? (check at Amazon)||0.0|
|Where Have All the Cowboys Gone (check at Amazon)||0.0|
|Give Me All Your Money (check at Amazon)||0.0|
|Where Has All the Melody (check at Amazon)||0.0|
|Oh Where Has My Little Dog Gone? - All in One Educational Activity Center and Sing Along (check at Amazon)||0.0|
|Where Have All The Guernseys Gone?” (check at Amazon)||0.0|
|Where Have All the Bullets Gone? (check at Amazon)||0.0|
|Where Have All the Storks Gone? A His and Hers Guide to Infertility (check at Amazon)||0.0|
|Where Have All the Flowers Gone: A Singalong Memoir (check at Amazon)||0.0|
|Where Have All the Servants Gone? (check at Amazon)||0.0|
|Where Have All the Leaders Gone? (check at Amazon)||0.0|
|Where does all the money go? (Frilly and Trilly) (Volume 1) (check at Amazon)||0.0|
|Where Have All the Lovers Gone: Becoming Your Husband's Favorite Person (check at Amazon)||0.0|
|Time and the Soul: Where Has All the Meaningful Time Gone -- and Can We Get It Back? (check at Amazon)||0.0|
|If I'm So Smart Where Did All My Money Go: Balancing Your Financial Objectives for Lasting Wealth (check at Amazon)||0.0|
|Where Has All the Glory Gone? (check at Amazon)||0.0|
|Where Does All the Money Go?: Taking Control of Your Personal Expenses (check at Amazon)||0.0|
|Teaching Teens and Reaping Results in a Wi-Fi, Hip-Hop, Where-Has-All-the-Sanity-Gone World (check at Amazon)||0.0|
|Time and the Soul: Where Has All the Meaningful Time Gone--And Can We Get It Back? (UK Professional General Reference) (check at Amazon)||0.0|
|Where Has All the Power Gone? (check at Amazon)||0.0|
Where Has All Your Money Gone? have 1622 words, post on ezinearticles.com at July 17, 2007. This is cached page on USA Posts. If you want remove this page, please contact us.