Our previous entry, we discussed those expenses you can’t really live without. Now, we will address those that make your life easier/nicer either because you like the brand, or because they represent an indulgence in any aspect of your life: your Wants.

The best way to explain this is with the water example: let’s say that you are thirsty (you have a need: to ease your thirst); but you won’t drink tap water for free, nor buy that $1 water bottle, because you prefer (want) to buy the $2.35 or higher bottle of Evian, Pure Water, Fiji or Vogue water; or even worst, a can of soda. It all depends on the brand and the conscious or unconscious feeling you get when you buy their product.

Among the most common wants that make our income disappear we find the following:

1)     Your favorite Latte: The standard coffee lover has between 2 and 4 cups of coffee a day, and latte lovers tend to buy 2 a day. So, let’s the numbers speak for us:

 And please ad 15% tax to every amount above, plus tips.

Ok, so let’s now discuss, how can you reinvest this money so you get more than just the calories of a medium size drink.

1)     Want to go for lunch?

Just as your latte can be a Gold Mine to others, buying lunch every day can also drain your wallet. At an average of $10 per lunch x 25 working days a month, you end up spending $250 just on lunches plus another $250 in groceries if you eat breakfast and dinner at home; but just by spending $300 a month you can buy enough food to have 3 meals a day for 25 - 30 days. In this way you will be saving $3,300 or another all inclusive vacation for 2.

2)     It’s on sale! Do you really need that poor quality shirt, dress, pants or shoes sitting in the most hidden corner of the store and offered at 70% (because nobody wanted it at full price), just because it is on sale? Before you swipe your card, think realistically how often you are going to use this garment, especially if you are buying a smaller size thinking that you will wear it when you lose weight.  The same applies to household items. Do you really need 2, 3 or 4 vacuum cleaners?

 There are many other items that are affecting your finances every month without you even noticing. A good exercise is to go through all of your bank statements and check for repetitive expenses such as credit interest charges, unknown fees, double charges, taxes on services, and so on. By listing and identifying these expenses, you will be able to cancel unwanted fees, reduce impulsive charges to your credit cards, and be more aware of your money’s whereabouts.