WE CANT AFFORD ICE CREAM

Several months ago, we went on vacation. While there, we got the kids ice cream from McDonald’s. It was $1.79 each. They had been given multiple “treats” during the day (not of the food variety, but riding the carousel and train at the zoo), and I didn’t see it necessary to spend $10-14 on ice cream after a big day. But it was something that would bring them joy, and it would be a surprise since it’s not a regular occurrence.

Our financial advisor told us that he has a saying in his family, “we can’t afford ice cream.” The statement isn’t meant as a literal statement of “we can’t spend $5 on ice cream because then we won’t be able to pay our necessities.” The statement is meant as a frame of mind. It’s meant to teach an understanding that you need to prioritize your spending and have the big picture in mind.

Treating our kids to the occasional ice cream is ok. Giving them the ability to know that ice cream is not going to happen all the time, but we can get it once in a while shows that we have to prioritize our spending and determine where this ice cream splurge fits in our budget and long term goals.

That comes across with a much higher sense of philosophy than I intend for this example, but the general concept is there. We take the time to determine whether spending money on something is valuable to us and worth the cost.

THE STARBUCKS / CONVENIENCE PAIN

So many people knock the concept of buying or not buying a Starbucks. I see things said all the time like, “I didn’t buy my daily coffee this week, so I’m practically a millionaire.” That density is keeping you in your poor mentality. You think that not purchasing a coffee and getting the instant gratification should yield the instant gratification of wealth. Instead, the point all along was on your mentality. Do you find it a priority to spend $6-8 on a coffee routinely? Perhaps that means you’re also thinking you can treat yourself to that new shirt, new shoes. Perhaps that means that you’re also willing to walk into a convenience store, like at the gas station, and buy a soda or an energy drink.

I also think back to a friend who would leave their house to go get a gatorade at the gas station down the road. They once left their house while we were there, bought 3 gatorades, and came home to play a game with us. This was routine. What if you went to the store and bought a case of gatorade? You’d have a cold drink that you want in your fridge on demand, you wouldn’t be taking the time to leave your house, you wouldn’t be spending money on gas, you wouldn’t be adding to the wear and tear on your vehicle (which eventually costs literal money), and you wouldn’t be paying a premium for the same drink.

A quick search tells me I could buy a 28 oz Gatorade for $3.69. I can buy a 12 count of 12 ounce Gatorades at the store for $7.98. In a given sitting, do you really want 28 ounces or can you get by with 12 ounces? Even if you want more and want to drink 2 Gatorades in one sitting, it would cost you $1.26 to have two of them at the ready in your refrigerator.

I recently was behind someone on a drive down a two-lane road. They were going 35 in a 45, in a car that had plastic as the driver side window, half the bumper missing, the passenger mirror missing, and a tail light busted out. They finally got out of my way at the gas station, where I watched them park in a spot and walk into the store.

STOP AND THINK

People don’t think about how that small decision can snowball. You’ve been trained through social media to think that you have “earned” a “treat.” Marketing by these companies tell you that it’s not a big deal to spend your money this way. Be stronger. Think about the decision. Take just one month to physically write down everything you spend. Yes, I mean take a pen and paper, write where you spent money and the amount. Categorize the spending. See if you can find just how much money went somewhere that could have cost you less or was unnecessary. I bet you’ll find at least $100 that was spent unintentionally, and it’s very likely more than that.

The TREAT for yourself is being more financially secure. It’s having the money for the necessities. It’s being ready for an emergency, but still being able to make your mortgage/rent/utility payment.