With rising gas prices taking its toll on the cost of everything Americans consume, and many having to choose between filling up their gas tanks and feeding their families for the week, making sure every penny counts is a new idea for some. As a society, we are beginning to look more closely at what we need verses what we want. At times, finding where you can cut expenses by doing without your "wants" can be tricky. We are so used to having all of what we need, and much of what we want, that wants and needs have melted together. Separating them can take much thought.
How is one to determine if the things they are spending money on count as a necessity or a privilege?
It goes without saying that most Americans have their own idea of what the basic needs are. Food, clothing, and shelter are just the start of what we "need." Other things we feel we cannot live without are T.V., Internet, fast food, hair appointments, and nice, BIG, new cars. Those with children have an entirely different set of "needs." The best schools, the best clothes, and newest and coolest toys, and dance, baseball, basketball, and karate. Things that were once considered luxury items to our parents and grandparents, are now part of everyday life for American children. Parents will forgo paying the water bill to make sure little Suzie gets to take cheer-leading. Paying $60 a month for gymnastics is priority over avoiding using credit cards to buy groceries. When you live for all of the things you want, you can dig a financial hole that, eventually, can seem impossible to dig out of.
The way to stop this cycle of spending money needlessly is simple, in theory, to break. Simply ask yourself, about each thing you spend money on, "Do I need this to survive?" When you are in a detrimental financial situation, this question can slowly help bring you out of it.
First, take a look at all of your monthly bills. What can you do without? Television is probably the hardest thing for most to cut off, but the most needless thing we spend money on. Perhaps you're not ready to lose T.V. totally, but you can probably cut back on what cable or satellite package you currently subscribe to. This can save you quite a bit of money each month. Getting rid of movie channels and other upgrades, will leave you with some entertainment at the end of a long day, yet can let you rest easier when you go to bed at night, knowing you're saving, perhaps, $30 a month.
Do you really need Internet? It IS a luxury item for most people. Unless you use it for your job, to make money, it simply takes money from your wallet. Just as with television, if you cannot commit to losing Internet completely, downgrade. Many people pay extra for faster connections. Losing the luxury of speed, for the slower, yet usually cheaper, dial-up method, might be a reasonable start in saving money each month.
The same is true for extra-curricular activities, eating out, shopping, and even buying junk food when you grocery shop. "Do you need these things to survive?" Getting your hair and nails done can be quite costly... is it really worth it? Would a simple cut, minus the color, make a big difference in the money you have on hand in a year? Add it up, it might astound you.
One place most people are losing money left and right in these times is at the gas pump. Plan your trip ahead of time to avoid having to get out multiple times a day. Every gallon counts. Could you walk or ride a bike? Do you really need a big SUV to get around? A smaller car would not only probably cost you less in monthly payments, but it would save you money due to better gas mileage.
Making the choice to do without the things we are so accustomed to having each day can be very difficult. It is something that anyone can get used to, though, and it is often the only way to find true financial freedom. When you are free from the bondage of "things" in your life, you will be able to appreciate every little thing you do have. When you reach the financial goals you have set for yourself, you can relish in the sense of pride that comes from sacrificing in order to gain.