It Adds Up
Financial Management

It Adds Up

While flipping through the channels on TV today, I saw a show called “The Suze Orman Show”which deals with topics concerning one’s financial predicaments in life. Since I caught the show during the middle of it, the topic of discussion was about how a former guest accumulated a debt of about $40,000 in food which definitely caught my attention. While this is the first time I have ever heard of a person creating that kind of debt on food, it reminds me of how so many times people just buy things as right there and then they seem to have enough money to buy what they see.

For myself, I try to avoid these types of impulsive decisions by thinking ahead as I treat my purchases like an investment. A classic example is how when I am hanging out with friends, our initial plan is to simply go and watch the latest movie and afterwards we would all head back to our homes to eat and rest for the next day. Often enough, many of them would be fairly care free with money as they mention that they just got paid. By the end of the day, all of the extra food and drinks they have bought have pretty much equaled to what they had waiting at home for dinner. Not only did they end up spending more than intended, but it also kind of negates the money saving aspect of preparing your own meals instead of eating out.

Does that mean that I never say buy a drink at the theatres or ever go to restaurants? Of course not. However, if I spent money before hand at the supermarket to buy groceries for dinner, what sense is there in spending additional money to eat out and let that go to waste? It’s like already owning a specific DVD movie yet you still rent it at a store. Obviously there may be times where it would be in your best interest to do such a thing, but I think these kinds of go with the flow spending habits can definitely have a huge financial impact as all of those small items add up.

1 Comment

  • mishanya 4/22/2006

    Hi! Nice site, looks great! Well job you done, thanks… =)

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