Christmas has become so commercialized. Many consumers of the mega retail holiday use resources they do not have, to buy goods and services they do not need, just to impress people that do not like or respect. Splurging on Christmas shopping has been justified with the notion that it only occurs once a year. Inflated spending and wants become more of a hallmark than card sending and gift giving. Individuals create extensive wish lists with the asks for items that would not ordinarily be affordable to them.
Students and entrepreneurs need and want laptops. There has been an age old debate on the best computers, whether those run on Windows or the macOS. While a laptop may be considered a necessity, the purchase of a MacBook Pro with a base price of $1599 causes a more prudent individual to question its necessity when there are multiple laptop and desktop options that are much more reasonably priced and affordable. Since less than 25% of all computers in the world are run on the mac Operating System, these desktop and laptop devices would be considered a luxury as they are not utilized by the mainstream population.
Let us consider transportation. Depending upon the metropolitan city in which an individual resides and works, the transportation requirement may be bus, rideshare, subway, or a personal vehicle. For the individual who needs personal transportation, the likely vehicle may be a car, either electric or gas. Individuals’ income, job role, and title may vary greatly depending upon multiple factors. A car is a necessity, but a high luxury vehicle is not. Disguising the need for a personal vehicle with a monthly car payment in excess of $1,000 may be viewed as a luxury, not a necessity by a reasonably prudent individual.
Housing is not only a necessity, but also typically the greatest monthly commitment and expenditure of many people. Sometimes, monthly housing is more than one-third of the income of the individual with the monthly financial obligation. When leasing or renting housing, an individual may be tempted to obligate their financial resources to luxury housing that accommodates an expensive taste. Certainly, an individual requires housing, but do they require a penthouse in a high-rise building downtown with a lease expense that is almost 50% or greater of the monthly income of the tenant.
Consumers should resist the urge to create financial obligations that exceed and over extend their income and resources. Living within your financial means and resources will not only prove to be prudent but provide a peace of mind that should always be welcomed.
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Nicole Michelle
Finance and Money Wiz
December 25, 2020
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