“Budget your luxuries first” my first boss once told me.
“Budget your luxuries first” my first boss once told me. I have found this to be a valuable idea in life. Notice, it doesn’t say spend all your money on your luxuries, rather, it uses the word budget. And specifically, budget them first.
Of course, over the years, my idea of what constitutes a luxury has changed. Luxuries really cover a wide range of ideas to different people, and many people don’t even realize the choices they have already made as being luxuries. I see a lot of people who have, IMHO, chosen their luxuries poorly. Every once in a while, I take the opportunity to point this out to them. My favorite (perhaps because it elicits such an emotional response in many people) is children.
One summer, a major luxury I budgeted for was to have Wednesday off every week to go tubing. Nowadays, my luxuries include a mortgage (no, I’m not being sarcastic!) and a vehicle payment. Both of which could have been less, but the choices I made related to the things I wanted.
So, Alan (my first boss), wherever you are, thanks for the advice! It has stood well against the test of time.
[update 1998-Jan-02] Alan just let me know that this idea really comes from Robert Heinlein’s book “Time Enough for Love.”
I contend that children represent a luxury. Perhaps there was a time when children where a necessity for living: as ones own parents where unable to assist on the farm (or other family business) it would be prudent to have children available to move into your position of responsibility as you moved into your parents’. Later, as a you became unable to continue, just as your parents before you, you would have your children to “lean” on.
I believe this model is extremely dated, it is not consistent with the majority of today’s families. In an age of IRAs and 401(k)s, it is within the individual’s capability and responsibility to prepare for their own future, and not to coerce another to do so purely because of an arbitrary genetic relationship. Yet, still, we see many hopeful new parents continuing to exhibit this expectation.
A more realistic procedure would be to take the money one might otherwise spend on raising children and simply invest it. I know, I know, you are thinking that I am just asking to be flamed, but that is true anytime someone is willing to express an unpopular viewpoint…