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Saving Finances - Key Elements Proper Budgeting and Prioritizing

Author: MichaelBenifez Total views: 4 Word Count: 560

While we may think only the wealthy or celebrities are engaged in a good old-fashioned battle of oneupmanship when to comes to having the newest, most expensive gadgets or items money can buy, the truth is it happens all around us. You yourself have likely engaged in this, whether it was a conscious decision or not.

Buying one product over another because of the brand name attached to it, and not necessarily for the increased quality it may possess is just one example. You even have found yourself buying something because it was more expensive, when of course it should be the complete opposite. We're all naturally concerned about how others view us though, for good or ill, so this practice persists and will likely continue to grow even worse as we become an ever more symbol-conscious society.

From trying to have the smallest phone among your group of friends, the best lawnmower in the neighborhood, or the biggest, flattest T.V money can buy, all of us are susceptible to the charms of outlandish spending.

A 2006 survey called 'Necessity or Luxury' surmised that items or services that were once seen as unnecessary or fads have now been deemed necessary in the eyes of many Americans. Despite increasing entertainment options and an overall declining T.V viewing audience, 33% of Americans now viewed cable or satellite T.V as a necessity, nearly double the 17% that viewed it as such a little over a decade prior.

Perhaps not so surprising is the fact that 51% view P.Cs as a necessity, also nearly double the 26% who though so in 1996. That particular question can be taken with a grain of salt, as it can certainly be argued that computers have a near infinite amount of applications and uses now than they did when the internet was just getting off the ground among the mainstream in the mid 90's.

Even things that aren't viewed as necessities are seeing increased popularity. Be it expensive home-gym equipment, cosmetic surgery, restaurant quality kitchen appliances, cottages, boats and so forth, things that were once reserved for the very affluent only are now entering the lower income rungs as more common purchases as well.

These trends are not just prevalent in America, but across the developed work, and even in the developing world. With emerging economies like India and China seeing increased levels of wealth, so too are more and more people in those countries indulging in items that would've been all but inconceivable just a short while ago.

Of course this increased spending comes at a price, and that price is the financial well-being of many people and families. Americans are more in debt than ever before, resulting in a verifiable credit crisis in the country. Other affluent countries are seeing the same thing happen to their citizens as well, as people continue to spend money they don't have on item they neither need, nor can afford.

Ultimately it comes down to setting your priorities, tracking daily expenses choosing your path and laying in the bed you've laid for yourself. If you need these modern conveniences and would rather have them at the risk of your retirement fund, then that's a choice. If you want to keep a good standard of living into your old age, then trimming some of the excess fat and doing without all the 'necessities' is a necessity in itself.

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About the Author

Join Michael Benifez at http://www.everlife.com. For more information about daily expense tracking.

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