On Expenses, Passion and Savings

On Expenses, Passion and Savings  In the end what matters most is that you are able afford the life you really want.  Sometimes that involves a lot of sacrifices, especially when it comes to expensive future goals - house, tuition, etc.  But it's not a bad idea to indulge your passions as long as your goals aren't jeopardized. Who knows, they might be expenses now but income streams in the future.
If you've read a lot of personal finance articles or attended seminars on the same, you've probably become aware of a few similarities.

For one, starbucks is a popular target. Inevitably, a quick summation of designer coffee expenses is bandied around.

After that, the "list" usually includes gadgets, shoes, clothes, and high-end (or high-priced) food.

There's probably a good reason for that. Keeping finances in check is the first step towards financial independence. You can't invest without money and how can you have money if you don't save, right?

But life is usually more complex than what we are able to verbalize. And the same is true in this case.

What I mean is: when these arguments are made, it's usually rationalized as us amassing things to impress other people or to live up (or buy into) a certain standard of living. We're effectively pursuing a false goal.

Which is a great point.

However, by unilaterally cutting costs across the board, we might be doing something similar: amassing money for the sake of impressing others or to attain a certain lifestyle that's been thrust onto us. We're effectively replacing a false goal with another one.

I'm not saying that saving or saving a lot is bad. I'm just saying that like most things, saving isn't generic and we can be smart about it.

Specifically, we should be careful to keep most expenses down but not to be afraid to keep them up or even increase them when it comes to our passions.

For example, photography and baking are rather expensive hobbies. A lot of money could be saved by not spending anything more on them.

But they also happen to be potential sources of income if we're really passionate about them.

Even foodies can spin their passion into a blog that could earn money.

And even when it comes to expensive coffee, it could possibly not be such a bad thing. As long as it's something that truly has a positive effect on you.


The guy at the end of this TED talk brings up a good point. Sometimes the "utility value" of something isn't just in the return of it. In this case, the consumption may bring some other perks. (emphasis on may)

Of course a great deal of care is needed when deciding if something that looks like a "want" is actually a passion and if it really brings a positive effect.

But in the end what matters most is that you are able afford the life you really want.

That involves a lot of sacrifices, especially when it comes to expensive future goals - house, tuition, etc.

But it's not a bad idea to indulge your passions as long as your goals aren't jeopardized. Who knows, they might be expenses now but income streams in the future.


If you liked this post, please subscribe to my feed, like me on Facebook, circle me on Google+, or follow me Twitter @thePFApprentice. It's free, you won't miss new articles, and you'll also get my free ebook: the Super Savings Guide.

Enter your email address for your free subscription








photo credit: Camdiluv ♥ cc

No comments:

Post a Comment