💵Finance💵 Superfluous expenses

hendersonp (66)in #money • 6 years ago

Hello friends I hope this very well, today I bring you another post from my series 💵finanzas💵, I will talk about the superfluous expenses, in the previous post of this series I have touched on the subject, but I have not gone deep to show you the big hole that can Doing in our finances those expenses, the first great internal conflict that we have with these expenses, is that beginning to cost us a lot to differentiate between necessary expenses and superfluous expenses, it is common to hear a women say "I need a haircut" or a man to say "I need to have a few beers" as these phrases there are many who call "necessity" to things that are not, let's begin by defining this term.

Needs

It is everything that we can not do without, for our organism to identify non-expendable things is very easy, since everything that is not sleeping, oxygen, water, food, urinating and evacuating is dispensable. For an integral life we need some additional things, like housing, health and interaction with other humans, social pressure makes us believe that there are many more needs, but the reality is that most are dispensable and remember if they are dispensable are not needs.

The size of the superfluous expenses depends on the amount of income that the family has and of the country where they live, but what is distressing is that in percentage terms the middle class and the poor use a higher percentage of their net income in superfluous expenses than wealthy people , let's see how much money we can go in this type of expenses, (for this case I will take an average of Latin American prices)

Let's start with a couple that has a low income (from $ 500 to $ 700 per month)

1* "Special" dinners or lunches, the most common thing we hear or tell ourselves to reinforce a "need" that does not exist is: "I work all the fortnight I deserve something special", "I work to give myself my tastes", etc. The monthly cost of these expenses is around $ 50.

2* Sweets, I do not know about you but this is what I've heard the most "I need like a sweet" in this area comes ice creams, sweets, cookies, etc., this monthly expense is around $ 15.

3* Entertainment, here we can find the cinema, trips to places where we have to pay to enter, etc, the monthly cost is around $ 20 per month.

4* Others such as hairdressing, manicure, liquor, sporting events, this generates a monthly cost of about $ 30.

5* Personal garments, this point can become the most catastrophic if we let ourselves be carried away by society, fashions, brands and by wanting to appear higher, because many people tend to spend so much in this aspect that it is impossible to pay for them completely in a single month and use credit cards or systems of section to be able to afford them, we will take the cost to an average point about $ 50 per month.

This gives us a total of $ 165 per month, of superfluous expenses, but let's look at what these expenses can represent in 20 years. We will realize that it is a large amount of money $ 165 per month, this gives us a total of $ 39600 in 20 years, it is most likely that this sum of money will never be in a couple with an income of (500 $ to 600 $) per month but we already know that it is not because they did not have the opportunity, it is because we use too much money in superfluous expenses almost 40 thousand $ in 20 years is the consumption of a couple with low income.

The superfluous expenses in the middle class although they are the same as the poor ones are more expensive, suppose that couple receives an income of ($ 1,600 to $ 2,000):

1* "Special" dinners or lunches, like the previous example, use phrases such as "I work all the fortnight, I deserve something special", "I work to give myself my tastes", only when perceiving more money, those "tastes" are given in the fashionable places of your city and obviously it produces a greater expense, some dinners or "special" lunches per month can cost about $ 150

2* Sweets, you can also go to the ice cream parlors or fashion cafes, where you can spend about $ 40 per month.

3* Recreation, this does not vary so much, $ 40 monthly,

4* Others, such as hairdressing, manicure, liquor, sporting events, night outings, here also tend to increase expenses in the middle class, $ 150 per month.

5* Personal garments, like the poor, the middle class wants to appear to be economically higher than where it is, but personal garments are not usually such a strong impact on the middle class, we will average a monthly expenditure of $ 100.

This gives us a total monthly of $ 480, of superfluous expenses, if we take the same cost to 20 years would give us 480 * 240 = 115200 $, same is a giant amount of money, which probably is never in the hands of a couple with that kind of income, and it's not because they did not have the opportunity, it's because they consumed it in superfluous expenses.

Something that perhaps I have not commented, is that the poor and the middle class only differ by the amount of money they earn monthly, make the same mistakes in personal finance, only that they are scaled to the amount of money they receive month after month , in the upper middle class superfluous expenses ceases to be a major impact on their economy, what can affect them most is the purchase of liabilities but make a post on that subject hehehe, if you want to read it I will leave it at the end of this article.

I know many people can criticize and say but 20 years without a different dinner ?, 20 years without seeing a movie? Well you can clearly see what your effort is worth, from $ 40,000 to $ 115,000, I think it's a great reward, other than with 10% of those expenses we could watch movies with homemade cakes, prepare ourselves breakfast, lunch or dinner special, etc, as I always say, mathematically it is very easy to have enough money, following a financial pattern at age 60 we all could have enough money to not worry more about it, but the difficult thing is to fulfill the financial plan, have the strength of will and perseverance to do it, that's what we have to focus on, good friends, I say goodbye, if you have any doubt or criticism do not hesitate to write it.

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