I live a pretty darn privileged life, in both senses of the word. Let’s focus on the financial privilege for a moment, shall we? The Frugalwoods wrote an excellent piece about privilege, if you have a few minutes to go read.
I’m not sure about you, but my spending habits have changed as I’ve aged.
Changed a lot.
While I never did live on ramen noodles during university, I did live on a lot of whole wheat pasta and spicy Primo brand pasta sauce. This week, I’ve had avocado cream sauce pasta from the Oh She Glows cookbook (affiliate link), topped with… lobster from the freezer. I think that’s a really solid comparison, plain tomato versus avocado lobster.
No, I don’t eat lobster very often, at all. My attempt to clear out the freezer a bit, in order to keep our obscene grocery costs in check a little bit, is just well timed with me writing this post.
If things went south on us, we are very aware that some of our luxuries would be on the chopping block faster than a Chopped contestant who forgot to include a basket ingredient. The thing about spending is that so much of it is a choice, but a choice to which we become rather accustomed.
Lifestyle change is difficult, but necessary when you can’t afford it. Luxuries are luxuries, not needs. We can self-justify all we want, but that won’t change reality when you’re spending more than you’ve got. Spending has got to go. It is much easier to accomplish when you remind yourself where your spending is a luxury.
Here are some of our current luxuries, but definitely not all.
Food
First on the chopping block would be our food budget. We have quite a few allergies, but I know how to save money on our groceries versus what we do now, while still maintaining a healthy diet. It involves things like fewer avocados and raspberries, and more carrots and apples.
Food is both a necessity and a luxury item, in our case there is a mixture of necessity spending and luxury spending. I dare you to make shrimp etouffée sometime. It cost us nearly $30.
Satellite Radio
Let me just say that I have very much come to appreciate why my spouse decided this was worthwhile. Having commuted together temporarily for two weeks, listening to CBC, NPR, BBC and Bloomberg makes for a much more educational drive. I learned a lot of things that were fascinating. It was much better than the rock and country that my regular commute involves.
It’s nice to have… but therein lies the problem. It’s nice to have, not necessary at all. Bye bye, luxury.
Smartphone Plans
How quickly can you say “downgrade”?
Say it with me, “downgrade.”
We wouldn’t be able to get out of our contract without penalty, but I’m pretty sure we could find at least $50 a month to lop off of these bad boys.
Alcohol
I like wine. We consume a lot of it. We generously pour wine for others when they are over. (Please do come visit.)
In addition to wine, we have a rather well stocked bar. Lillet? I’ve got that. Pims, sherry, port, sparkling wine, pomegranate liqueur, four colours of rum… you get the idea. Plus a non-trivial scotch collection.
Should things go south, the acquisition of additional alcohol would have to be cut. We do have the benefit of being able to drink down the stores, for quite awhile.
Squash Court Memberships
Similar to a gym membership, this is a luxury. I have a punch card and my spouse has an unlimited pass. It’s good fun, but totally not a necessary thing. I could, *gasp*, try to learn to play tennis, for example. Tennis and I do not have a history of getting along very well, but there is a tennis racket or two in our possession and some tennis balls. We primarily wrap the balls in tape and use them for physio, but there’s more in the canister still.
Tennis = free
Squash = not free
Our Own Living Space
It’s really nice to be able to leave dinner dishes on the table until tomorrow. Some people, though not me, appreciate the pants-optional nature of independent living.
Independent living is also a luxury. How many people lived with roommates during university, and even afterward? Remember why?
It cost less.
We own our own place, but it has two bedrooms. Should push come to shove, we could return to inhabiting a shared domicile, and taking the cheques to the bank. This transition would be a lot easier for me than for my spouse, but it would be on the table. It might be on the table, buried beneath a large pile of more welcomed lifestyle cuts, but it would be on the table.
Nothing is sacred when you have a shortage of money.
Vacations and Weddings
The vacations are a pretty obvious thing, yes, but it’s still important to state that our annual vacations would be gone gone gone. We have family that lives far away and make it to one side of the country or the other at least once a year. In addition to visiting family, we tend to travel internationally once per year.
Most of the time, we are able to combine trips to attend weddings with trips to see family. We are fortunate that we have been able to afford to attend our friends’ weddings (for the most part). Attending weddings is definitively a luxury when there is travel involved. As awful as it is to miss out on milestone events, sometimes they are just not in the cards. We would make things work, or have one of us go, for as many things as possible, but would have to draw a line on occasion.
As a note on our position of privilege, we would also be able to ask our families to assist us in attending crucial family moments. For example, if we were unable to afford attending a funeral.
Luxuries
The fact I can even discuss these luxuries I’d have to give up if things went south shows how many true luxuries I have in my life. It is important to me that everyone keep that in mind. It is too easy to go from labeling things luxuries to labeling them needs.
Reflecting on these luxuries in my life is an excellent exercise, one that forces me to acknowledge how good things are for me, and also ensures I do not drift too far into believing my expenses are needs.
I really like satellite radio as well but also realize it is something that would be given up if I had to. Every little bit helps but it’s pretty small on a monthly budget since its only $10 per month
Dan @ Our Big Fat Wallet recently posted…15 Things Your Grocery Store Won’t Tell You
$10 eh? I just threatened to not renew and only managed to get it down to $12!
Exercises like this are great because if the unfortunate should happen it makes cutting back so much easier. It’s like you already have prepared mentally for the cutbacks. Alcohol used to be our biggest area for savings but after having our daughter that expense has gone down quite a bit (being hungover, even slightly, with a small child is torture). Now our biggest expense is probably our car. We spend about $5k+ a year in depreciation, insurance, gas, maintenance etc. Getting rid of the car would be our biggest cutback if we ever had to.
Thomas @ i need money ASAP! recently posted…Making Money From Home: July Update $1,958
I’m with you on food. It honestly brings me more joy than any other purchases I make. Cured meats and fine cheese may be expensive, but they are oh so delicious. Totally worth it!
Taylor Lee @ Engineer Cents recently posted…S-T-R-E-S-S
We are right there with you. We live a pretty darn good life. Part of that is because we no longer pay huge fees on servicing our debt.
We would also have to give up the wine, downgrade the phones and swtich to a cheaper food budget. We can go cheap on that when we have/want to, especially when we are saving for something else like a trip or my coming Audi. We can squeeze it all the way down to $75-100 a week if we have/want to. (Here is a sample of it: http://www.debtfreeguys.com/2014/12/42-meals/)
BTW, when can we come over for wine? We will bring a bottle or two! 😉
David of the Debt Free Guys recently posted…The 1, 2, 3s of Emergency Savings Plans
The offer stands! I am a fair bit further north than you, though.
John has never been north of the boarder. We need to get him up there. Which city are you in again? I love Montreal and Toronto. The company I work for is based in Winnipeg.
David of The Debt Free Guys recently posted…Monday Money Minute: Visualization
Alcohol would be something easy I could give up, plus eating out. However, I’m not sure my fiance could handle giving up those things, which would make it tough. Your homemade dinners sound way more intricate than anything I even eat outside the home! Yum!!
Melissa recently posted…How I Work Full-Time, Blog, and Freelance
I would not be able to give up the alcohol so easily. My spouse and I also differ on which things we find easier to give up, which would make it tricky.
We do cook quite well, quite often 🙂
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
I love this exercise of itemizing the luxuries in life–it always makes me feel so thankful for everything we have. Like you said, it’s a privilege to be able to make these choices. We’re in the same boat re. our extra bedrooms. We could totally rent them out (either to tenants or through AirBnB) but it’s just not worth it to us–we’d much rather have our house to ourselves :). Luxury :)!!!! P.S. Many thanks for the shout out–I appreciate it!
Mrs. Frugalwoods recently posted…July 2015 Expenditures
It is a good habit to get into, definitely. This list only scratches the surface, too.
You are lucky to have so many bedrooms 🙂 Your house is going to make a wonderful rental one day.
You wrote that privilege piece at a time when I was thinking a lot about it as well 🙂
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
I already don’t pay for a lot of these things you mention, but if had to make more budget cuts, there are still a few things I could cut out to save some more money.
Kayla @ The Jenny Pincher recently posted…3 Blogs That Will Save You Money
I am lucky to have a lot of financial privilege in my life 🙂
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
As I have grown more financially comfortable, I haven’t really indulged myself with a lot of luxuries. However, there are some things I know I don’t need and could give up fairly easily if the need were to arise … satellite radio (as you mentioned), gym membership and my propensity for indulging my inner geek with the purchase of lots of gadgets.
SavvyJames recently posted…Improve Your Spending Practices
Gadgets can be a pricey one! Our laptop is on the fritz, but I hate how much they cost, so it’s going to have to come to a grinding halt before we get a new one.
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
I don’t blame you for waiting as long as possible. A good laptop can be pricey.
SavvyJames recently posted…A SavvyInterview – Douglas
It’s amazing how many of the things you mentioned wouldn’t even cross my mind as luxuries. I think that definitely proves your point. No one wants to go without their little comforts and conveniences. But if the need arises, it’s so much easier to clearly see those little extras for what they really are!
kay ~ the barefoot minimalist recently posted…Rich Lessons Learned from “The Real Housewives of (fill in the blank)”
Fascinating, especially for someone who lives without a lot of possessions.
There are oodles of little extras in my life, that I have grown mighty accustomed to having.
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
Anne, it feels great when we can afford these luxuries. I myself have this kind of privilege and can give up some of the luxuries I enjoy now, though I know it would be difficult to live by without it. I know it’s worth it. I think I can give up gym membership, alcohol, and vacations.
Jayson @ Monster Piggy Bank recently posted…Amazon FBA Part 9 â Shipping / Freight
It is great that we can afford them… and that we can appreciate the situation we are in that allows us to do so.
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
I love Oh She Glows!!! That’s a serious list. Giving up the wine made me pause (LOL!)
Michelle recently posted…The Great Disconnect: What Living on A Cash Budget Has Taught Me
It’s a pretty swell book, I really need to use it more often. I’ve made a few things in there more than once.
I did NOT say give up wine… I said stop buying wine. HUGE difference, haha!
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
We would get rid of vacations, eating out, our gym membership, and probably a few other things. Our budget isn’t too high to begin with but there are some things we could definitely cut out if we need to.
Michelle recently posted…Survey Side Hustle Tips Plus ProOpinion Review
Vacations are hard to give up, but you can save a boatload of money from doing so.
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
As much as I hate this employment/unemployment roller coaster that I’m on, it did teach me/us a lot about luxuries. In the 1.5 years that R and I have lived together, our combined income has dropped to about 50% of what it first was. We sat at home, watching our cable tv, drinking our beer, eating steaks or delivery. Now we’re watching Netflix, with our beer, and ramen noodles. Haha. Things thankfully aren’t as bad as they could be, but they are without a doubt less luxurious as they once were.
Amanda @ My Life, I Guess recently posted…Beauty On A Budget
50%.
Ouch.
Good work on cutting costs. You’ve still got one full wage in your house, which is fantastic 🙂
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
It is nice to be able to afford some of these luxuries, but also nice to know that there are areas in which you could cut without too much pain if necessary. I would similarly slim down food, gym membership and housing expenses if I were to find myself in dire financial straits.
Ali @ Anything You Want recently posted…Five Friday Favorites
It’s definitely nice to not live on the edge, and to appreciate that there are places available to cut!
Anne recently posted…7 Luxuries I’d Have to Give Up if Things Went South
I love that avocado pasta!!! As a vegan, it’s a staple in our house 🙂
I like to think we are as dialed back as we could get but if things went terribly, we’d cut Netflix and the Internet (shudder). And I’d have to start making Ramen or peanut butter sandwiches for dinner!
Kirsten recently posted…What Am I Really Learning? (The Art of Learning From Mistakes)
It is so good, and so ridiculously easy to make!
Our internet and cable are included in our condo fees, so there’s no skipping out on them for us. That said, our internet is $3 and the cable is around $25, so it’s a much better deal than if we had our own internet package.