In today's culture of gratification, spending thousands of dollars on "need to have" items can lead straight to bankruptcy.
When you're invited over to your friend's house for Sunday afternoon football and you notice he has a brand new 42-inch plasma television, the thought that immediately pops into your head is, "Hey, I want one of those too." It's cool to have something like this in your house, right? Maybe not, because many people these days unconsciously sabotage their attempts to save for their future by indulging in what has become "the essential goodies." You don't need any of these things. There's a good chance you are slowly frittering your money away on either some or all of the luxuries listed below.
Dining out - Sure, restaurant meals are nice, but if you're eating out frequently instead of cooking at home the expense will add up to a bundle in the long run. Consider this, a starter usually will cost you $5-10, then there's the main course, that's $15-25. If you want drinks and dessert tack on another $10-20. You see where this is going? Don't forget the tip either, which is usually 15%.
Alcohol - Booze in whatever variety you can think of is pricey these days, there's no getting around it. You can literally drink your paycheck at the bar, since a glass of wine can be as much as $5 or more. Spirits and imported beer are no bargain either. And while you're drinking you might want something to munch on too, like peanuts or pretzels. It all adds up fast if you're going out two nights a week.
Cigarettes - Ditch these right away, and get some medical help to kick this nasty habit. You could get mouth, throat or lung cancer and it's expensive in any case.
Your pride and joy (automobile) - Whether it's a clunker or a flashy new SUV, the outcome will be the same. You'll end up with a mountain of bills to pay. There's gasoline, repairs and insurance. The money pit has no discernible bottom in this case. Be smart about this, take public transportation or get one of your friends to come pick you up if you live far from your place of employment. If these solutions aren't practical then try to find a job closer to home.
Buying clothes, books and music at the full retail price - You might not find exactly what you're looking for at a second hand shop, but it could mean the difference between paying $50 and paying $500. There are many out there who can scarcely afford to spend this much, either with cash or a credit card.
Credit cards - They are essential for booking flights and hotel rooms online and over the phone, there's no doubt about it. But if you make only minimum payments, or miss the deadline completely these will put you in a heap of trouble. Just ask the millions of Americans who are living from paycheck to paycheck with nothing left over at the end of every month. The future for them could be dire indeed. Use cash and buy only what you can afford.
Lottery tickets - There's nothing wrong with dreaming about winning a big jackpot, and sometimes people do get lucky. But let's face reality here, the odds are really stacked against you. Expecting a big pot of money to fall from the sky is just unrealistic. If you're not careful this can turn into a gambling habit, so save more and spend less.
