I was searching for something recently and I came across the story of Brianna Karp. Basically, she lost her job in 2008, and ended up living in a trailer in a Wal-Mart parking lot. She was without electricity, and didn’t have the ability to take regular showers or prepare home-cooked meals.
The article then tells how Brianna held on to her laptop throughout this entire ordeal. She then started a blog about her life (she updated it at a Starbucks), received an internship at a magazine, and now has a book deal.
Reflecting on the fact that she held on to her laptop even while being homeless, the article then goes on to list then things we can’t live without! This is not based on the author’s thinking, but rather on the recent trends during the last recession.
I’ll list the items and my view on whether it really should be considered a “necessity”. Now, before I start let me just say that nothing is really a necessity except for food, water, and covering (clothing and shelter).
For the purposes of this article, we will define a necessity as “something without which a ‘normal’ life would be extremely difficult, and it becomes an ‘untouchable’ item when extreme budget cuts are needed“.
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Portable Computers
I think that in light of this story about a homeless woman catching a break because of her ability to update a blog, it is easy to claim that we can live without a computer…especially a laptop. Also, I may be the wrong one to ask considering that I earn my main income and my side income by using a computer!
It’s hard to imagine someone who is used to communicating with a computer, suddenly being left without one. However, if I was facing the prospect of my wife and I being homeless, and I could get 6 months rent by selling my computers and related equipment, it would be a “no-brainer”!
High-Speed Internet Access
I would have to disagree with this one. I mean, if you are in a budget crunch, and you don’t depend on the internet for your income, then going to the local library or Internet cafe once in a while is fine.
Although, it would be extremely difficult to cut out high-speed Internet access if you have become accustomed to it. But if I was forced to miss Facebook status updates in order to save $50/month, I think I could do it (especially, since I’m hardly on there to begin with) ;-)!
Smart Phones
Another area where I disagree. I understand that the sale of smart phones has gone through the roof, but it is still not a necessity. Most of the people that I know who have a smart phone, don’t need one. They don’t even know what most of the features are or how to work it – they just bought it because it’s a new status symbol!
In fact, I still know people (young people actually) who don’t own a cell phone at all. Still, there are others who only carry a prepaid model for emergencies.
Education
The article really has in mind payments made to private high schools. I’m torn on this one. I know that private school tuition is insane, but I can’t imagine a child learning at an advanced rate (an assumption that is not always true) at one school and then having to move backwards!
Obviously, there isn’t always a difference in the level of education at private and public schools, but when there is, I would vote for necessity. But only when the child is already in private school. If your child is in a public school and you want them to receive a better education, then you need to spend more time with them helping them with their studies!
Remember, we are looking at cases where we have to make serious budget cuts! If you are in financial trouble, finding an extra $20,000 per year really doesn’t fit into your plans.
Movies/TV
Movies actually refers to going to the movie theater. TV refers to watching hours of TV and also to buying high-definition sets.
I’m going to give all of these things a huge no! We have managed to place entertainment on such a high pedestal that we are now willing to sacrifice almost anything for it!
If you must watch movies and TV shows, there are free options online (if you kept your internet service), and you can get unlimited DVD rentals and streaming movies for $10/month with Netflix! However, I must point out that there are many other alternatives out there for entertainment – especially if you are married and have kids!
Music Downloads
See “movies/TV” above! Most people already own a huge collection of music, and there is no way that adding another 1,000 songs to their playlist can be considered a necessity!
Pets
Ok, I refuse to start any trouble on Peter’s site! I want to quote an article on this one:
Fido sits at the table these days. Maybe even at the head of the table. While Americans have cut spending on themselves, spending on pet food, supplies, grooming, vet care and clothing (clothing?) has been rising uninterrupted by about 5 percent per year. Industry officials attribute this to the “humanization” of pets, which in turn has led many pet owners to close the “quality of life gap” between their animals and themselves.
Definitely not a necessity…no matter how warped our thinking may become on the subject!
Alcohol
There is no way that alcohol should be considered a necessity! The article points to the fact that beer and wine sales have risen over the last few years, while bar sales are down. That would seem to suggest that more people are drinking at home – which shows that people aren’t willing to give it up!
Unfortunately, most of us know people who are flat broke, but still find a way to buy a six pack every night! Alcohol is definitely not a necessity, and I wish it wasn’t even an option!
Coffee
A few years ago everyone began to realize that if you spend $5-$10 per day on coffee, those seemingly small purchases add up to thousands of dollars! However, instead of stopping, more people are just brewing their own at home.
Even with that, I have to give this category a no as well. If you like coffee, it is a nice thing to have; but, it is not something that you can’t live without!
Reader Questions:
- What would be the absolute last thing to go in a time of financial crisis for you?
- Do you already have a plan in place as to how you will systematically get rid of expenses at that time? If not, learn how to prepare for financial hardships before they happen!
Among the things you listed I think I’d have the hardest time getting rid of my computer, and my internet. Not only do I make significant income using those tools, but I’m amazed at how dependent on them I’ve become.
We had our internet go down earlier this year due to a bad DSL modem, and we had no internet for 4-5 days. I wasn’t quite sure what to do with myself, I think it opened my eyes a bit to just how much time I spend online, and just how dependent on it I am.
I suppose I’d also have a hard time getting rid of our dog if it came down to it, and she’d probably be the last thing to go. But if she had to go I’m sure we could find a good home for her. We do love her, and as such we’d make sure she had a good living situation, but family comes first before the pets.
In a pinch I’d be able to get rid of these things as well – and just use a computer at our local library to get things done. But it would be tough.
I agree with you on that one. It would be very difficult to give up my computer and the internet. But I think the largest reason is because I use my computer for a significant portion of my side business.
The library is definitely an option. But because of the limited time you can use the computers (if someone else is waiting), I would have to make better use of my time.
I think the best option is to first cut out things that have monthly fees associated with them. I also don’t think anyone, unless rent is $100/month will be able to get much out of computer equipment. Did it mention how old the lady’s laptop was? Anything over a year isn’t going to be worth much. A new laptop is $500, so a used one might only be worth $200.
I agree with you about the monthly fees. If you can sell your item and also eliminate a bill at the same time, then go for it!
No, the article didn’t mention the age or model of her laptop. I actually paid close to $2,000 for a laptop recently, and I’ve seen some go for as much as $4,000, so I guess it really depends on what you own. But in general, if you are only going to get a couple hundred dollars for it, then it’s probably better to keep it and use it to search for jobs and try to make money.
Thought provoking. Most of the things on your list don’t apply.
We could trim in several places, like go vegan.
This is what we could give up.
Coffee. I’d start roasting my own from dandelion roots or chicory.
High speed internet. My sweetie already negototiated a good deal, and our son uses it for school (you can’t download pics on dial up). But if hard pressed, he could do homework at the library (in 1/2 hour time slots alloted).
Christian school for the youngest. The last thing to go for us. We gratefully get scholarship help.
As an aside. If your financial situation changes that drastically and your child is in Christian school, talk to the school, there is help available. Homeschooling is an option, but it’s not free, and there are restrictions. Some states have more than others. Cyberschool is available free in our state. It has the same slant as a public school, but the info can be mediated somewhat as it’s delivered into your home.
That is a great point about Christian schools…many of them have programs or scholarships in place to help out the families.
I think high school education is MORE important than college education. You can pick up college along the way- IF you have the skills. I find that my daughter and son in law struggle in life because the high school education was so poor. We did not realize how poor (and both of us are teachers) until to late. There wasn’t an alternative (except homeschool- which would have resulted in a different scenario of living with a strong willed child). Looking back- we probably should have moved to get a better education.
I had a horrible high school education as well (even though I was in honors classes in HS), and I was always playing catch up in college. However, the great thing is that if you are only going to college to get a good job, only the name of your school really matters. So you could go to a community college for a couple of years, do great, and then transfer to a school with a big name!
Things would have to be pretty dire for me to give up my computer and internet access. How else would I contact employers to look for a job?
I don’t have any pets, but I think people get pretty attached to them… Unless my pet had some kind of expensive, chronic disease, they generally aren’t that expensive to keep around.
Other than that I agree with you. You don’t need an expensive private school to get a decent education – it’s more about the parent and the child than about the school. The rest of the stuff is ridiculous, frivolous little luxuries that should be the first things cut if you have any trouble. I would rather give up coffee now than have even a small chance of not being able to afford a meal in a year.
The only exception is maybe things with a contract, where you would have to pay a fee to break the contract. I might wait a month or two to see how the job market is before I cut those.
I think that the internet would be one of the last things to go – because it is actually a business expense for me. But if it wasn’t, going to a public library, or even piggybacking off of a neighbor (with their permission, of course) would be great options.
Most of the things on this list aren’t even close to necessities to me, but the article that I referenced looked at the fact that these items grew in sales during a serious recession!
Steve. I agree with Janette. Sadly there are huge differences in public schools. Even with “no child left behind”. If you choose to do the public school route for your own children, be very careful where you settle down.
We used to have access to the previous year’s SAT scores online by public school and the range was amazing even within a small geographic area. (See if your state has them. They may not be a perfect gauge, but they are something.) Our school district was smack dab in the middle of our state’s average (which is near the bottom in the nation.) The school district west of us was lower still by 80 points and the school north of us better by about 100 points for each section.
A friend works at the local community college and is constantly amazed that so many students can’t put together a coherent paragraph. When you mention a particular school district she just rolls her eyes. The kids don’t know how to study or find information. The infrastructure isn’t there.
Parents can only do so much “filling in” on a child’s education. After seven hours in a mediocre school each day, plus commuting time, you have only a few hours to challenge them before their brains fry, and only if you know exactly what they’ve missed.
We are very grateful to have the a private education or home school option.
I completely agree with your assessment of public schools. Unfortunately, since many parents of children in private schools find it easy to let the schools do all the work, the same problem can arise. I think that no matter what option you choose, you have to be prepared to put in work, and also continually evaluate how effective it is for your child. I’m biased toward home school, but I do think that a parents involvement can overcome a lot of the shortcomings of the other options.
But you do make a great point about overwhelming your child.
My computer would be the last thing to go and the hardest to get rid of. I have lived without internet before and using the library isn’t very private. While looking for jobs or paying bills, anyone can look at your computer screen and see what is going on. It is a lot easier to keep private information private if it is on your own computer at a Starbucks or McDonald’s. At least for me it is.
Pets would be second to last to go. My dog can always live at my dad’s home, but my cat’s and two parakeets would have to be put up for adoption. I couldn’t do it unless I was homeless.
Home would be the 3rd to last to go. My home is cheaper than renting and if things were that bad I would live at someone’s home.
Other than those items, if problems arose with finances, I would start cutting monthly items, and only purchase things NEEDED, and maybe even start selling things. I don’t NEED anything in my home to survive, but I sure am a lot happier having this stuff around.
I would go crazy without a library card.
I think it’s a great idea to make a prioritized list of what things are the first to go. And it is easier to think dispassionately about making cuts before times get tough, than to make the decision when you’re emotionally charged or drained.
This list seems very skewed to me. I am self-employed. I could certainly give up a laptop and high-speed internet, but only if I never wanted another client to hire me ever again in my life. In case you missed the sarcasm, that’s a big NO, I could not give those items up. I’d turn off my heat entirely and go without a furnace all winter (I live in northern CA) before I’d give up with my laptop or high-speed internet. Both those items are essential to me earning my income.
Music downloads and smart phones? Interesting those are even listed at all as I consider both a massive waste of money, and don’t do/have either even when I’m earning a good income. That isn’t even on my radar. Haircuts now, THAT is something I’d wrestle with. I need a good professional appearance to sell myself to clients, but that can be big bucks. I’d probably start going to cheaper places.
It definitely was skewed. However, the list was created based on the purchasing trends of the last few years. So, the author’s premise was that if these items are increasing in sales during a recession, then Americans must view them as necessities.
I guess it really does say something about people who continue to purchase these things even when faced with unemployment and a slumping housing market!
If you look around you will see all the things you have but do not really need. I think life would be a lot easier for people if they would get rid of all the things thats supposed to make life easier. Those things seem to actually make it more complicated.
The way to look at “necessities” would be “Does it Make Money?”
A computer and internet are a necessity in my life, because they are the sole vehicle for how I make money. For anyone who is in my situation, it would be folly for them to sell their computer and get rid of their internet, because in doing so, they’d be getting rid of any income they have or could have.
The best way to determine if you NEED something would be to ask yourself how much money that item brings in each year. If owning a smart phone brings in money that is above and beyond what a smart phone costs, and if a cheaper model wouldn’t work for bringing in said income, then you NEED a smart phone.
Anything that doesn’t bring in money over what it costs to keep and maintain is not a necessity. Things like alcohol, pets, coffee, music, movies, etc. are all “wants” since none of them bring in money (unless you own a coffee shop, or a pet store or a movie rental place!), and should be sold/rehomed in case of dire situations (I’ve had to rehome beloved pets when I went through a dire financial situation due to circumstances that were not my fault, and yes, it’s tough, but it can be done).
Within the last two years, I have had to make some serious decisions about which expenses to reduce due to the loss of my pension. I have no debts, as such, just expenses. Such as my lease, gas, electricity, food, gasoline, TV/internet, HMO, cell phone. Now two years later, this is what I have done in order to live within my social security (which by the way has stayed the same amount for two years, with no cost-of-living increase at all). From a 3-bedroom town-house with a basement, I now live in a two-bedroom apartment with just a storage room (-$350 reduction). Whenever I leave my apartment I turn off (not just lower) my thermostat, and my bill has dropped substantially. As many electric plugs as possible are pulled from their sockets, until the time I have to use the appliance. Magicjack has replaced my 2,000 minutes of a cell phone. I still have a cell, but the usage minutes are minimal. I chose to use Plan B of my HMO company instead of Plan A, which reduced my premium. My car is 8 years and paid off, so I combine my errands into two days a week. I qualify for food from the nearby Food Pantry so that subsidizes my grocery bill to the point that I only shop once every two weeks. All-in-all my expenses have been cut $700+ a month, but I know the quality of my life has not diminished. There are other adjustments I have made such as lower my cleaners bill, since I wear more of my cotton clothing these days (laundered), etc. This has worked for me.