financial survival

The NYT has published a sequel to its 2006 column advising young people to lay off the lattes and instead put the money that would buy fancy coffee in a piggy bank (read: IRA) that will allow you to survive until you die.

Survival, it should be noted, is what we're talking about here --- not necessarily living a life enhanced by pleasures that Americans often purchase regardless of their ability to pay. Don't eat out, don't buy new things, and maybe you'll be able to take a cab to the doctor's office when you're old, instead of waiting in the rain for the bus. And, if you start being miserly now, you'll be accustomed to that lifestyle by the time you're old.

Thankfully, I'm already doing a lot of what Damon Darlin recommends. I've been saving for retirement in various ways and am debt-free. As mentioned here before, as the Child of Immigrants I have witnessed firsthand the way the frugal methods my parents followed to save the money to establish themselves in this country and grown to appreciate how they instilled those values in me. Today, however, they have the means to live more comfortably but can hardly bear to spend money on themselves.

I would like to use my money for things that are truly important to me. Better writers have said this more eloquently than I do, but money buys safety, security, peace of mind. You also can use money to support your interests, but lately I'm struck by how much money I spend to support my goals indirectly.

Why did I pay others to prepare and serve at least a dozen of my meals in the last week, when I could cook similar food better myself? Why did I go places and struggle to get the attention of someone who could pour me an alcoholic beverage?

Mostly, it's because no one (more or less) lives in my house but me, and it's easier to meet a group of people at a restaurant or bar than to try to organize a gathering. So, I'm paying for convenience --- and like it or not, getting what I pay for.

Then there's the separate issue of missing the big picture. Why do I drive miles out of the way to save a few dollars on groceries and then waste larger sums paying late fees or parking tickets?

My goal this month: to determine the true reasons behind my spending and see whether it's really worth it.