A Financial Experiment
"Money makes a good servant, but a bad master."
- Francis Bacon
According to many experts, very few people actually know where their money goes. Most people can tell you where their fixed expenses go--car payments, house payments, insurance, hookers, etc. What I am talking about here is non-fixed expenditure. On Thursday evening I decided that I would track all my non-fixed expenditure for the next week and see where my money goes. I don't have all the data in yet as a full week isn't over, but the results have been interesting so far.
On Friday I spent $112.46 on the following items: a cup of coffee, a swim lesson, a hair cut, some pre-shave oil, a shoe shine, and groceries. I packed my lunch on Friday so that helped keep my cost down slightly, but I don't drop cash like that on a normal day. Today I spent $19.25 on the following items: a cup of coffee and dry cleaning for the week. Other than the coffee, I made all my own meals, did some stuff for work and went to the gym.
In a previous post I wrote how enjoyment is not necessarily equated to expenditure. It's true. This statement doesn't need to be flushed out, or supported by some anecdotal evidence. Some people might interpret this to mean that they have to deprive themselves of things to apply this concept. I do not believe this is correct. It appears that there is an optimal range of personal expenditure which maximizes one's daily enjoyment without any deprivation. My cousin packs a lunch each day then takes the cost savings from the week and applies it to a meal at a great restaurant on the weekend with her husband, or spends it on a massage. She concluded her thoughts by saying it's a lot easier to watch your spending when you know that you will receive the benefit of it within a reasonable period of time.
As with most of the personal changes I try to implement in my life the conclusion is often very similar: I am trying to achieve a fine balance. Such is the case with my latest project. I am attempting to eliminate what is not necessary without depriving myself. I could go out and buy a coffee maker and make coffee each morning, but I like getting a cup of coffee in the morning. Sometimes I buy from Starbucks, and sometimes I buy from our cafeteria at work. The common denominator here is that I enjoy the walk or the extra few minutes of a drive, which helps me gather my thoughts and get mentally organized. And I usually drink $2 USD coffee. If I was throwing down $4 USD each morning on a drink then I would be in different territory.
This is an ongoing project. I am sure that I will have some additional thoughts as this unfolds.
Tomorrow is lining up to be a very nice day. I'll start the day off with a monster breakfast and a big cup of coffee as I will be heading to the office to get things for my latest project lined up. Once that I complete I am planning on going for a long run, and then an even longer nap. For the time being, things are good.
Namaste
- Francis Bacon
According to many experts, very few people actually know where their money goes. Most people can tell you where their fixed expenses go--car payments, house payments, insurance, hookers, etc. What I am talking about here is non-fixed expenditure. On Thursday evening I decided that I would track all my non-fixed expenditure for the next week and see where my money goes. I don't have all the data in yet as a full week isn't over, but the results have been interesting so far.
On Friday I spent $112.46 on the following items: a cup of coffee, a swim lesson, a hair cut, some pre-shave oil, a shoe shine, and groceries. I packed my lunch on Friday so that helped keep my cost down slightly, but I don't drop cash like that on a normal day. Today I spent $19.25 on the following items: a cup of coffee and dry cleaning for the week. Other than the coffee, I made all my own meals, did some stuff for work and went to the gym.
In a previous post I wrote how enjoyment is not necessarily equated to expenditure. It's true. This statement doesn't need to be flushed out, or supported by some anecdotal evidence. Some people might interpret this to mean that they have to deprive themselves of things to apply this concept. I do not believe this is correct. It appears that there is an optimal range of personal expenditure which maximizes one's daily enjoyment without any deprivation. My cousin packs a lunch each day then takes the cost savings from the week and applies it to a meal at a great restaurant on the weekend with her husband, or spends it on a massage. She concluded her thoughts by saying it's a lot easier to watch your spending when you know that you will receive the benefit of it within a reasonable period of time.
As with most of the personal changes I try to implement in my life the conclusion is often very similar: I am trying to achieve a fine balance. Such is the case with my latest project. I am attempting to eliminate what is not necessary without depriving myself. I could go out and buy a coffee maker and make coffee each morning, but I like getting a cup of coffee in the morning. Sometimes I buy from Starbucks, and sometimes I buy from our cafeteria at work. The common denominator here is that I enjoy the walk or the extra few minutes of a drive, which helps me gather my thoughts and get mentally organized. And I usually drink $2 USD coffee. If I was throwing down $4 USD each morning on a drink then I would be in different territory.
This is an ongoing project. I am sure that I will have some additional thoughts as this unfolds.
Tomorrow is lining up to be a very nice day. I'll start the day off with a monster breakfast and a big cup of coffee as I will be heading to the office to get things for my latest project lined up. Once that I complete I am planning on going for a long run, and then an even longer nap. For the time being, things are good.
Namaste
posted by Zen_Accountant at 10:00 PM
2 Comments:
As always, knowledge is power.
As Suze Orman says, "Save your Starbucks dollars." Most employers provide free coffee. Why should you be paying for something that is free? People who insist on paying for coffee for its perceived "quality" remind me of people who buy bottled water for the same reason.
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