Changing a Need to a Want

The following is a staff writer post from MikeS.  He is a married father of 2.  So, with the cat, he ranks number 5 in the house.  He loves numbers and helping people. Please leave any questions or comments below for either Mike or Crystal.

I recently made a change to something I had previously considered a need, dry cleaning.  I don’t have to wear a shirt and tie to work, as my workplace is business casual, but I prefer it.  I have been wearing a shirt and tie for work since my internship in college.  I have also been going to the dry cleaners once a week.  In the last few weeks, I have been rethinking that habit.  I have the money budgeted for the dry cleaning expense, but I began to question whether that’s where I wanted my money to be going.

Expenses Trending Upward

Over the past several months, I have been seeing a couple of my expense categories trending above their respective budget allocations, namely food and what I call house.  Other than I think the kids are eating more, I can’t say for sure what is driving the increased food spending.  I just know it’s been about $25 a month higher on average.  The house category has also seen increased spending.  The house category could simply have been under estimated.  I have been in my current house for 3 years now and I still feel like I am trying to get a handle on the routine maintenance costs for it.  I have a good handle on the things that I know come up on a regular basis, but costs still seem to be outpacing my budget.  Again, it’s not a huge amount, probably in the $25 a month range.  Since, I won’t receive any salary changes until April of next year; something would have to change if I wanted to address the shortfalls.  It may have been Crystal, that triggered me to reevaluate my expenses, but I decided to look and see if there was anything that I could change.

Is It Really a Need?

As I stated earlier, dry cleaning has been in the budget from the beginning and I have always treated it as a need.  When I reevaluated my expenses, I questioned that assumption.  I was spending about $105 a month for dry cleaning.  In the beginning, when I was wearing suits, this made more sense.  All of my suits were dry-clean only.  Today, I simply wear slacks with a shirt and tie, none of it is dry-clean only.  The only thing preventing me from cleaning and pressing the clothes myself was me.  I started thinking whether the $105 on dry cleaning was really where I wanted the money to be going or whether there were better ways to allocate that spending that money.  It was then that I decided that I could clean and press my own clothes and reallocate the $105 to other areas.

Redistributing

The first two things to account for were easy, food and housing.  I will begin to allocate an additional $25 each month to each category.  This should hopefully bring those categories back on budget.  The next allocation was to additional savings.  I will be adding $25 to the monthly amount that I send to my Vanguard brokerage account.  That will bring that amount to a total of $75 a month.  I then decided to up our allowances, or “fun money”, by $25 a month.  I’ll allocate $15 to myself and $10 to the wife.  Yes, this is certainly a want, but I reason it that I am doing something to earn it by washing and ironing the clothes myself.

Constantly Changing Budget

My budget never seems to remain the same during the course of a year, which is a good thing.  As my opinions change or evolve on what I believe the best use of my money is, my budget reflects it.  I certainly don’t make daily or even weekly changes, but a few times a year seems to be the norm.  This helps me to stick to the budget as I believe it gives me the best chance to achieve my goals.

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4 thoughts on “Changing a Need to a Want

    • I certainly consider it fun, the wife, not so much. I am surprised at how the budget does change over time and even month-to-month. I have thought out ditching cable, but I’m not there yet. Maybe in a couple of years when my current deal ends.

  1. Thank you for helping me add that distinction to my budget.

    “As my opinions change or evolve on what I believe the best use of my money is, my budget reflects it.”

    It is not like a business plan where people write it for the bank to get a loan and then never look at it again.

    It’s a living thing, it’s a constant and never-ending improvement.

    Cheeers!
    Renaud Gagne recently posted..How I Got Zero Percent Interest on My Credit Card DebtMy Profile

    • Glad I could help. I think it’s helped my wife and I stick to our budget. As our views or attitudes have changed, our budget reflects it. Can’t say I am enjoying ironing my clothes, but I do like the extra cash flow.

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