We are bombarded by advertising to purchase items almost everywhere we turn these days. Having the constant temptations of modern day consumerism has a great affect on the personal finances of many people.
Even though we need to purchase some items to survive, there are always temptations of better versions of those items. It seems like as soon as you purchase electronics such as a computer or mobile phone, they come out with a newer version.
In addition to purchasing these items, you also need to consider the total cost of owning them. With mobile phones and tablets, in addition to the original purchase you also have the additional costs of texting, roaming charges and app charges. Most apps are about a dollar or two each, but these add up quickly if they are recklessly bought.
A newer vehicle often has higher insurance costs, registration costs and maintenance costs. Many people consider car payments as a way of life, but if you continue driving your current vehicle until you absolutely need another one and save what you were paying for monthly payments you may be able to pay cash for a different vehicle in the future. Even if you cannot afford the entire cost, you would at least be able to pay a considerable amount of it. Some experts suggest, that you cannot afford a vehicle if you need to finance it longer than 3 years. Some car loans now are up to 7 to 8 years. If you end up financing that long to make payments reasonable for your budget, you may end up owing more on your car than your insurance will pay if you happen to have an accident.
If you purchase a home or more expensive home, then you may incur additional costs such as higher utility costs, décor and maintenance costs. When purchasing a larger home, you may have additional costs of purchasing more furniture to fill the rooms than what you had previously thought.
Many advertisements make you think that you will be more successful if you have the latest gadgets, expensive vehicles and clothing.
With the credit plans and financing plans available, it is very easy for people to get into financial difficulties. You can purchase almost anything on a monthly payment plan, but if you get into too many of these plans you will find yourself having trouble living within your means. The payments may not seem like a lot until you get a number of them to pay each month.
Modern day consumerism can have a great affect on personal finances of many people.