I will never forget an exercise I did at my religious pre-marriage retreat. Each person in the couple marked off items that we considered “necessities.” I said that a washer and dryer were necessities. My previous husband-to-be did not agree.
Yes, I do realize I can technically live without a washer and dryer but to me, going to a Laundromat or hanging clothes was not an option. I would gladly make other sacrifices in order to have a washer and dryer.
My point here is that a “need” is a relative thing. Yes, technically, you only need food, water, clothing and shelter to survive. But some things in our life provide more joy and happiness than others and I truly believe we live our life to enjoy it.
No one can decide for you what a necessity is.
How you spend your money is a personal decision and only you know what is negotiable or not. This is important to keep in mind when talking with others and especially when talking with your financial advisor.
I was working with clients who were spending more than they were making every month. The living expenses showed they were spending a significant amount of money on a house cleaner. The wife said the house cleaner is a necessity and said she would not be mentally stable if she did not have her house cleaner. For her, that expense was not negotiable, but she admitted there were other expenses on that list that were.
Knowing how and where you are spending your money is the first step.
A powerful exercise is to look back and see how you have been spending your money over the past six months or a year. You can make better decisions when you know the facts. Some people do not realize how much money they are spending on things that are not important to them.
I have a friend who got out of significant credit card debt in two years just by tracking how she was spending her money. It is a similar concept to keeping a food diary. Many of us don’t realize what or how much we are spending (or eating). You want to be more aware and deliberate in the choices you make with your money and finances.
Spend your money wisely on things you want, need and enjoy!
We all make choices and have options. I challenge you to make informed, smart decisions with regards to your money and think about what are the “needs” versus the “wants” versus the “waste” or unappreciated expenses in your life.
P.S. What is so ironic to me, is that after I got divorced I lived in an apartment that did not have a washer and dryer so I DID have to go to the laundromat to wash and dry my clothes. I liked the apartment enough that it was totally worth that trade off for me. 🙂
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