Today we went up to the California Academy of Sciences. We are members and so we try to go during members only hour since it's less crowded. We always have a debate whenever we go up there, should we try to find free parking on the road or park in the garage?
Since the museum is only open to members for one hour, we have to gauge what our chances are to find parking and then balance it against our aversion to paying for parking. But, at the end, we always end up parking in the garage because it's convenient and we want to make the most of our time at the museum. We ended up spending over $13 for parking, and that is a lot, but from my perspective it was worth it.
First, it is convenient. When deciding whether to pay for something that we could probably get for free, you have to calculate the value of your time. Unless it is apparent that parking can be found easily, is it worth it to spend an inordinate amount of time looking for parking ? We had a limited amount of time and the parking garage was open (it usually is as it is still early). Also, if you have young children, then it's almost a requirement to find parking that is close by.
Second, what is our purpose? We were there to spend some time at the museum and we wanted to get there during member only hours so that it wouldn't be too crowded. Spending time looking for parking would most likely defeat this purpose.
Third, I get easily aggravated if I cannot find parking easily. Having a parking spot that is close to the museum makes things so much easier.
Sometimes, it's worth it to pay for something that could otherwise be free because your time is worth something too. There's a balance and we all have to decide where that line is.
One reason why I've decided to track my expenses is to create a budget of some sort. I've never really kept track of my expenses and I've come to realize that in order to be financially healthy and independent, I need to understand how I spend my money, so that I can form a plan.
I've always put things on my credit card and also kept a little cash in my wallet, but I never really thought about my spending habits and whether they were getting in the way of my goals and ultimately, fiscal responsibility. If I'm finally confronted with what I spend on a daily or weekly basis, I'll be able to analyze whether my spending is based on need versus wants, or whether my expenses are reasonable and if not, where I can cut down. Maybe if I'm confronted with what I actually spend, I'll think more about my purchases.
To keep myself from overspending, I usually shop with a list and stick to it. The grocery stores, obviously, want to provide every inducement to get me to spend more money and it's hard not to fall victim to the siren calls of the nice displays that you look at once you enter the store.
Since we're throwing a party tomorrow, I had to go to Safeway to buy a few items. For the party, I had to buy paper bowls and sugar, and for the house, I needed to get water and orange juice. So, what did I end up buying?
As I cruised through the fresh produce section, I noticed that asparagus was on sale. Hmmm, I could make some roasted asparagus tomorrow, I rationalized. I hadn't thought of a vegetable dish yet, and wasn't it convenient that I happened to find it front and center? Two bunches of asparagus went into my cart.
As I moved down the aisle where baking goods were, I got some plain white sugar and then got to the section that had the paper bowls. Since plates were also on sale, I bought some paper plates.
As I passed from one end of the store to the other, I also picked up some other items that weren't on the list, chips for people to snack on (they were on sale) and some peanut butter (we were running low). I finally reached the refrigerated section and bought some orange juice.
So what did I end up spending? $39.32. I should have ended up with a $10 or maybe even a $15 bill, but ended up spending more than twice as much as I had intended.
I think that it takes discipline to ignore the tricks that markets play to get consumers to spend more money. Have you noticed now the ends of each aisle are filled with convenient items that are marked for "sale" (sometimes that sale prices are not even that good), and how the more expensive and commercial items are in the middle of each shelf? I'm sure that a lot of market research went into consumer behavior to determine how best to showcase products and induce consumers to spend more. It's not an accident that the most widely used items, such as milk and bread, are found at the corners of the shop, so you have to go through many appealing items before you reach your destination.
That being said, and even though I fully failed this mission, here are some tips to keep you on point when shopping:
1. Write a list. At the very least write down what you need, (1) because if you forget something, you'll have to subject yourself again to more temptation and (2) you may actually limit what you buy to what is on the list.
2. Don't shop when hungry. You are more likely to buy more items when you are not in a clear state of mind. I tend to think of things I'd like to eat right then and there and suddenly, my cart is full.
3. If you only need a few items, opt for a basket. You are less likely to purchase more items if you have to carry it and will likely only get the things you need.
4. When looking for a particular item, pay close attention to the top and bottom of the shelves. The generic versions of what you are purchasing are probably in the same area (but at a slightly worse real estate), are cheaper and tastes just as good.
5. Coupons/loyalty card. I tend not to get coupons because they are usually for items that I don't normally buy, but when I do remember to bring my coupons, I have saved quite a bit. Also, special savings are available through loyalty cards. I'm a bit on the fence on using such cards, but the savings tend to be pretty good especially if they are offering buy 1 get 1 one free deals. When those happen, I tend to stock up on non perishable items that are used consistently, such as spaghetti sauce and pasta.
I think I'll keep a running log of what I spend on a daily basis and by the end of the year, I'll tally how much I've spent.
Like most people, I have a lot of stuff. I tend to wonder where all the stuff comes from and how I ended up with it in the first place. When I receive an year-end summary, I'm left wondering, how on earth could I have spent that much, what did I buy and did I really need it?
So, today is the day I'll start to track my spending.....On to the rules. I will track discretionary spending, and not include spending related to fixed expenses such as mortgage/rent, childcare fees, and savings.
March 11, 2010 - $0 (brought my lunch in today and I ate breakfast at home.)
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