Foundations of Finance

There are things that I have now that I didn’t ever think I needed when I was a kid.  It seems that prior ‘wants’ have now become ‘needs’.

Let me give you a couple examples: two cars, high speed internet, upgraded phone plans (with internet on the phones), digital cable, HD cable, Tevo, etc.

Most of those examples point to the television.  I’ve been thinking about that aspect of my budget lately.  Probably because a guy came by the other day offering digital cable for just ten bucks a month!  That’s a steal!  And, for a second I thought, “oh, that’s a great offer, I think we should get it.”  But really do I need that?

Even though it’s only ten dollars a month, that adds up to $120 a year!  That may not seem like that much, but really-think of what that money would do for you if you were to set it aside and put it in a Roth IRA, mutual fund, or other investment entity.

When I was a kid we had something like 10 channels…maybe.  Could have been less.  But, we never watched tv anyway.  We watched movies together as a family, but other than that, we just had basic channels.  It definitely depends on family dynamics and how often you watch television.

However, my point and proposition is to only get what you need.  Cable is fine-don’t get me wrong.  I have basic cable and get about 60 channels.  And that’s plenty for me.  But, as a suggestion, upgrading to get higher quality tv or even more channels is just not necessary.

Again, I’m not saying to go smash your tv with a bat.  I’m simply saying that you can have more flexibility in your personal budget by sticking to the basics.

It’s all about choices and deciding what you really need as apposed to something you just want.