life_today

I bought pretty much nothing except for living essentials from March 17-April 17, 2011. It was not too difficult to spend less, but I am not sure how helpful such exercise would be for others. Most people should know that they do not need much to survive and that the necessities of life are really nothing too much.

I did make three exceptionally symbolic (on hindsight) purchases which were non-essentials. They are: an outdoor thermometer, a lunch at a cafetaria, and cola to go with my home-made pizza. I bought the thermometer because I was near the home improvement store and one of my parents asked me to buy it for them. Second, I bough a lunch at a cafetaria because I was a meeting with a friend for lunch and it would have been socially inappropriate to bring one’s own lunch to such situations. Lastly, I bought some pop out of that sense of “little things in life that you enjoy” for imbibing something fizzy with pizzas.

I guess it bring me to conclude there are three moments in which it is appropriate to spend money on the non-essentials: 1) gifts for others, 2) social appropriateness, and 3) little moments of enjoyment in life. I cannot think of anyways to argue these, and I do not want to become an ascetic. I will enjoy my ability to consume materialistically again while keeping my sense of awareness for the essentials versus the frivolous.

The purpose of this goal is to find the essential requirements of life through a month of conscious spending. As well, it is also a month-long practice of resisting mindless consumerism.

It is important to note that this goal is not about spending no money in a self-punishing manner. It is also not about trying to find ways to save money on the essentials that one must anyways spend (although such budget setting and price comparisons would be good practices in and of themselves). The point of this exercise is to define the essentials of life (as I see it) and having enough discipline to spend on ONLY those essentially and nothing else…for a month.

The first thing in accomplishing this goal is to set the parameters that define “living essentials”.

1) Food: This is self-explanatory. We need it to survive.
2) Shelter: Whether a box in a street corner or a half-suite in a suburban basement, shelter is something we necessarily must possess as long as we live.

The above essentials should be of no controversy. They are what any practical person would consider to be the essentials of staying alive and healthy.

The essential below mark a different category of self-defined essentials.

3) Transportation: It is not possible to walk everywhere where I live and still lead a functional and punctual life. Getting to places may thus require some monetary investment, but it is something I can and must live with.
4) Communication: At this point of my life, I am not ready to be a recluse. I need to communicate with my friends and family and employers domestically and abroad.

Furthermore, these essentials must be kept to the bare level of extravagance in accordance to the practicalities of my current life. For example, it is the difference between eating a corn beef sandwich at home versus a rib-eye at a steakhouse. You have to eat if you have to eat, but do you really need it is the question.

My list of essentials. If not on this list, I probably shouldn’t buy it:
1) Food
2) Shelter
3) Transportation
4) Communication

The CFA is not for the average folk who just wants to broaden one’s financial knowledge or learn how to invest. It is a very specific professional designation that teaches one’s ability to understand different financial products and practices. I am fascinated by investment and finance, but this type of testing is simply not for me.