What things are you talking about? I'm interested.
Well, this is where I lose any credit I built up in my previous post as the majority of Australians spend this way:
- Going out and spending hundreds (sometimes thousands) of dollars on alcohol and taxi fares (not saying you should drink and drive here BTW). As I said, you can have a great time without blowing more than half your pay on 1 night out that you don't even remember the next day.
- Always getting the latest technology/updating your phone, etc. Aside from the fact you pay an unnecessary premium when things first come out, the minor upgrades available on new technology are not going to make the difference you are lead to beleive. Certainly not worth years of contractual spending if your budget is already tight, particularly as you'll be tempted to upgrade again soon enough anyway (plenty of this technology is available now but is staggered release to maximise sales). As an addendum, people generally pay more than they need to on phone and internet bills - there are alternate providers than the 'big guys' who charge SIGNIFICANTLY less.
- Food. Both eating out and general groceries. I used to share a large house as a student and all six of us would put in $20 for the weeks groceries. With that, I would fill the pantry and fridge with good quality, healthy food (+ snacks) that would last us teenagers more than a week with change to spare. When it was a particular friend's turn, she would come back with about 2 days worth of food (having spent it all) and we would have to shop again. Even when I go to Coles, people in the queue will spend $100 and have 5 or 6 small items. Brand names don't always mean greater quality and fresh produce from the 'giants' is generally expensive and rubbish. There are alternatives (I bought 3 butterflied and marinated legs of lamb yesterday for $10 - total) . That's not even counting the regularity with which many people who cry poor eat out, buy several coffees a day, etc.
- Clothes. Specifically retail and designer clothes. In Australia, we pay huge markups on clothing that we don't need to. Again, there are perfectly good alternatives (i.e. the exact same clothes) that are 1-5% of the price (not talking unethical or cheap remakes). Particulalry when it is the 23rd Jacket or 45th dress you own. You're not going to stand out more or feel better about yourself.
Now, don't get me wrong. I have absolutely no problem with people spending their money on these things. Just don't agree with those same people crying poor, borrowing money (that they don't pay back) or always beleving they don't earn enough. People always beleive that if they just earn a little more they could save for this or do that but the reality is that 'we' always tend to adjust our lifestyles to spend no matter how much we earn. As I said, most of us earn plenty enough but have developed habits that we beleive are normal or we can't live without. It is my experience that these things add very little to our lives (certainly not what we subconsciously hope and beleive).