Sunday, May 8, 2011

Whats more important more money or the luxury items?

The price of luxury items has continued to go up and up, while the value has not changed. Many people would rather spend their money on a starbucks coffee then saving it. In this article the author makes it clear that she would much rather look at coffee as an occasional item even though it is something she buys daily. A daily item like coffee is for most people is not the same as going out at buying a new watch, which would be considered an extra expense, and not something bought every day. When her husband recommended putting it in the family budget she found it unnecessary, and said she could cut back. Instead of reducing spending in other places like excess shopping, pampering, etc. Even when her husband bought her a complex coffee maker that had the ability to make her regular order she only used it on the weekends and for parties instead of everyday to cut down that extra expense. The American dream has been to make money and live prosperously. When people don’t take inconsideration to save money for the stuff they want people end up spending on credit. During the Great depression this took a massive toll on a lot of people and again in the rescission. When people get to confident with their money it leads to more credit and in the case of the author an excess of money going to coffee could take a toll on the family’s budget. A $4 coffee everyday could be almost $1,000 over a whole year. This money could be used for many other more valuable things, but it’s all a matter of what is more important luxury items or money in a bank. 

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