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davidlerner.com > Financial Literacy  > Money and Convenience

Money and Convenience

Being able to get something when you want it can be very satisfying. However, if you’re prioritizing convenience and immediate satisfaction by eating into your future financial stability, you could be shooting yourself in the foot.

America has always been the front-runner in providing convenience, but we do pay a price. Consumers will pay 11 percent more for each added layer of convenience. The more convenient, the higher the price will go. 

Perhaps it’s our pioneer spirit that lives on in today's modern world. As the country grew, so too did the needs of people. To fill the demand, businesses thrived off providing for every need that arose.

As Americans got busier and busier, the culture of convenience skyrocketed. However, as the trend for providing for every whim expanded into the American consciousness, the United States changed from pioneer to entrepreneur. 

Times have changed, but is it for the best? In the 1960's, only 20 percent of mothers worked. Today more than 70 percent of households have both parents working. Families are working harder than ever before to make ends meet, and this means that they don’t have as much time to do things like cook meals from scratch.

Convenience begins to be an attractive option when you have to work all day and then do all the household chores that keep a home running. In fact, according to research, America is the most overworked developed nation in the world. 

The younger generations of Americans have grown up with this convenience lifestyle. With a smartphone in hand, they have access to almost anything from anywhere.

Data from GOBankingRates shows that 7 percent of young Millennials between 18 and 24 years old have less than $1,000 in their savings accounts. More shocking is the fact that 31 percent have absolutely nothing tucked away for the future. Older Millennials between 25 and 34 are not doing much better. 67 percent have less than $1,000 in their savings accounts, 33 percent have nothing at all.

Taking a longer-term view of life and foregoing some of the conveniences could free up funds for saving. Buying less coffee from a store, eating at home, or maybe doing the lawn yourself could save you thousands of dollars a year. According to the Bureau of Labor Statistics, the average American household spends over $3000 a year on dining out.

Take a long, hard look at your finances, and decide what is more important to you – convenience now or a sound financial future?  Figure out how much you save by cutting out unnecessary convenience items. That way you are in the driver's seat. Convenience need not be a savings killer.

 

IMPORTANT DISCLOSURES

Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities.

o the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable– we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC

 

 

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