Purchasing Decisions That Matter

I hear a lot of people talking about the rising cost of health care.  I won’t attempt to be political here on how we should fix it, but health insurance is definitely a high cost item.

But I think it is worthwhile to look at the statement, “I can’t afford _____” a little more closely.  That could be health insurance, college tuition, or anything else, and it will depend on your situation.  In my case, I can’t afford a trip around the world.

Why can’t I afford it?  In most cases it is because I’ve made the choice to purchase other things–anything from life insurance down to a cup of coffee on my way to work.

So back to health care, I think it’s somewhat odd to hear someone say they can’t afford to pay health insurance premiums because they have no money left over after paying two car payments, credit card bills, the cable bill and a new XBox 360 for their kid.

It seems to me they have a lot of other stuff they can’t afford.  In the U.S. especially, we have a really hard time handling money.  I think this happens not only because many of us are not educated about or taught discipline with money, but also because of the “keep up with the Jones” mentality that exists here.

Step back for a second and examine your purchasing choices.  Sure, you need transportation, but you can have that without a car payment.  Sure, cable tv is nice, but it isn’t necessary.  It’s natural to want your kid to have everything that the other kids have, but you didn’t have an XBox 360, and you grew up fine, right?

As an excercise, write out all the things you could possibly spend money on and see where these things rank.

If you're new here, you may want to subscribe to my RSS feed. Thanks for visiting!