Time to Quit: A Guide to The Cost of Vices

By JW Rayhons & Alexis Stigers

What are Financial Vices?

Financial vices can get in the way of your true financial goals and set you back in the long run. Financial vices are any regular expense that we include in our budgets that are inconsistent with our overall needs. However, while financial vices typically get a bad reputation not all are detrimental. Healthy vices may be something that brings value to your life such as a coffee every now and then or spending that extra $10 a month on a subscription you use regularly. Vices only become destructive when most of your money is going towards those short-term vices and become distractions to your overall goals. Some include weekly takeout, gym membership, Netflix, Hulu, Disney plus, Panera coffee, Spotify, apple music, everyday Starbucks, shoes, online shopping at amazon, alcohol, and lottery tickets.

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Can you Completely Avoid Financial Vices?

I would argue that vices are a necessary part of life to be able to not just survive but live. The biggest part is being able to have self-control and be disciplined. Admittedly, I have not had many problems with subscriptions or online shopping but oh man my financial vice without a doubt is a cup of coffee or going out to eat with friends. You tell yourself oh its only $5 for this coffee, I can afford that; but if you tell yourself that everyday for even a month that’s $140 on coffee alone! Let me tell you while in college that extra $140 could have gone much further. Today my vice is a little more controllable and that’s social outings with friends. You spend $10 here or there at restaurants and at the time it feels good. However, I have had to learn how to say no every now and then especially when I have a tighter budget or different goals then my friends. Going out with friends is a vice I need to keep track up and can limit but for me I can not take this out of my life and that is okay. By learning to limit and budget for it so it will not distract me from my long term goals.

What can you do? Identify and Make a Change

First identify your vice. If you don’t know how much you spend on certain things monthly, now would be a great time to start tracking your expenses so you can see where most of your money is going. For some, it may be subscriptions. If you don’t use these subscriptions, I encourage you to cancel or mark on your calendars when that free trial is up that way you don’t pay for something you do not need or want. If its daily takeout set realistic goals and try to dial back. Ask yourself, is it a want or need, is it impulsive, is it consistent with my goals? Cutting Vices isn’t always easy so show yourself some grace and keep your goals realistic so you don’t become overwhelmed.

The content in this article was prepared by the article’s author. Cetera Advisor Networks, LLC does not endorse its content, and the views expressed may not necessarily reflect those held by Cetera Advisor Networks, LLC.