I occasionally read a few articles here and there on various personal finance websites, and something that seems to pop up over and over again is the topic of “things you shouldn’t spend money on.” Many personal finance bloggers will declare a list of items that nobody should be spending money on. This always seems far too extreme for me. Everyone is different. People value different things. “One man’s meat is another man’s poison,” as the saying goes.
So when I see posts that declare that nobody should be spending money on some item, it bothers me quite a bit. Perhaps the item isn’t worth the money to the writer, but who is he/she to say that nobody should spend money on that thing? Lest you think I’m exaggerating people’s words, let me direct you to this post. The author presents “a list of ten things you (and no one!) needs.” Saran Wrap is one of the items. What? What am I supposed to wrap rice in before I throw it in the freezer? And it’s not as if I’m buying rolls of Saran Wrap every week; it probably costs me $10 a year, and I’m probably way overestimating that figure.
Coffee is one of those things that many people will tell you you shouldn’t be wasting your money on. Their argument is that spending $3.50 or whatever the price is on a single cup of coffee is just ridiculous, when you can make it at home for pennies. But you know what? I can’t make the same cup of coffee at home. The one I make will be significantly crappier. And if I’m only getting a cup of coffee every now and then because I want one, and it’s not adversely affecting my budget, then what’s the harm? Oh but the harm is thinking that there is no harm, some people will tell you. Take all these little things and add them up, and you could find hundreds of extra dollars that you’re just throwing away, they say.
But the thing is, if you deprive yourself of every little thing that may not be completely necessary, then what do you have left? Sure, you might get a bit of extra money that you can throw into savings, but does that make you significantly happier? Probably not. And maybe the coffees or the bobas or the nice dinners out aren’t actually bringing you a ton of happiness. But at least it’s not making you miserable. Personally, I would find it miserable if every time I wanted one of these little indulgences, I had to slap myself and tell myself that that $4 or $50 or whatever it is could be going straight into retirement. I don’t want to have to pinch pennies like that, because that would make me unhappy.
Now before you think that I’m advocating doing away with budgets and self-discipline and frugality, I assure you, I’m not. I do think, though, that if there is something you want, it fits within your budget, and it’s not harmful to you or others, you really shouldn’t have to feel guilty about it. So I can get a $3 bubble tea every now and then, because it doesn’t break the bank for me. If I were having one every day, that would probably not be very good for my health, so that’s something I shouldn’t do. But if I’m just getting a drink once or twice a month, I shouldn’t feel guilty about it. Same for cable. Yes, I do get the HDTV cable package. I enjoy watching shows in HD. I can’t get all the shows I watch on Netflix or Hulu, so it’s worth it to me. It’s probably not worth it to someone who’s working all the time and only watches TV for a couple of hours a week. But it’s worth it to me.
You don’t see me spending money on, say, a gym membership, because I just wouldn’t be taking advantage of it enough (some might say I actually should invest in one, but that’s a different story). I don’t buy Omega watches every month because, well, I just don’t have enough occasions to wear multiple fancy watches (I don’t even own a single fancy watch, for the record). So I’d like to think that I spend money in a fairly responsible way. Could I be better about it? Sure. I could eat out less often. I could find a cheaper place to live. But is it significantly affecting my finances, my future net worth? I don’t think so. At least, I don’t lose sleep over it.
So instead of the overly strict “never spend money on ___” rules that some people lay out, I would like to propose the following recommendation (not rule, because that word seems so strict). You should feel free to spend money on something if all of the following are true:
- You actually want to buy the item. It’s not because other people have it, your girlfriend wants you to buy it, etc.
- You can afford to buy it without hurting your budget.
- You will enjoy whatever you’re getting with your money.
- The thing you’re buying won’t bring you or others significant harm.
And that’s it! I just wish people didn’t fret over every $3 latte and $50 video game. If it’s only once in a while, just go for it.