Needs vs. Wants

Many years ago, I had a neighbor who would come over every month to use our phone so she could call the phone company and get her phone turned back on. Each time, she was in a panic because her husband was in the military and was required to have a working phone at home, so she was afraid that he would get reprimanded if his commanding officer tried to contact him before the phone company got it switched back on. This same neighbor would get take-out food several times a week, and always had cable service with premium channels. Somehow, I never really felt sorry for her when she would regale me with tales of their financial woes.

As I have mentioned once or twice, saving money, whether you need to reduce your debt, save for a large purchase, or just live within a small budget,  really just comes down to determining needs versus wants. A person’s basic needs come down to food, water, shelter and clothing. I could survive by eating rice and beans, drinking only water, having only 2 or so outfits to wear, and living in a one room shelter. I’m not saying it would be a fabulous existence, but it could be done. With that in mind, almost everything I own is a luxury. For me, the realization that I have so many things that I don’t truly need, helps me deal when I can’t afford to buy something I want.  

We live in a society that puts a high value on material possessions. We are bombarded by advertisements that try to convince us of all the luxuries that we need. The truth of the matter is that the vast majority of us don’t need any of these things. Nobody needs a high definition television. Nobody needs a television at all. If you are trying to pay off debt, you do need to control your spending.

For me, a few luxuries make the other sacrifices easier to swallow. It comes down to deciding which luxuries are worth it, and which ones aren’t. For example, I don’t need a high speed wireless internet connection in my home. It is very nice to have, and it allows my husband to do some of his work at home, and allows me to have this blog, so we decided that a broadband connection was worth the expense for us. It would also be nice to be able to access the internet from my cell phone. I could find the cheapest gas prices nearby and get driving directions when I lose my way. In the end, I spend most of my time in my house, and I don’t travel to places I am not familiar with very often, so I couldn’t justify the expense of a data package for my phone.  

Which expenses are worth it for you, depends on your particular financial situation. If you are only making minimum payments on your debt, and you have trouble buying food and paying utilities every month, then you really have no business spending $60 a month on satellite television service. On the other hand, if you have and are following a debt reduction plan and can comfortably pay all of your bills, spending $20 a month on a Netflix subscription can make it a lot more tolerable to skip that movie night or dinner out.

I have found that many of the luxuries that we cut out of our budget we have been able to replace with less expensive alternatives that are almost as good, or sometimes even better. The more your expenses exceed your income, the more things you need to cut. It isn’t always easy and it isn’t particularly fun, but neither is being $40,000 in debt (and that does not include a mortgage!)