How much is convenience really costing you?
Due to the hustle and bustle of our fast paced lives, it’s no surprise that we look for ways to save time and energy.
Convenience is an appealing option to save ourselves a minute here and there. But how much is convenience really costing you?
Convenience tax is the extra price consumers are willing to pay to make their lives easier. Consumers pay for convenience in many ways without even realizing it. And while it may be okay to pay for convenience every once in a while, it can be counter productive, keeping you further away from your desired financial lifestyle.
Examples of Convenience Tax
- On spot loans; MNOs and Financial Service providers are not sparing their consumers as they keep bombarding them with messages to access quick loans at the press of a button. The interest rates are never explicit (fine print), but the burden is felt when repaying the loan on things that were consumed and were most likely non essentials.
- Accessing mandatory services like TIN, Passports, Driving permits, Interpol clearance has been commercialized by brokers. In most cases, these services are free or very affordable but ignorance usually makes people part with ridiculous sums of money.
- Coffee. Going to the drive-thru for a cup of coffee in the morning seems harmless. It’s on the way to work, there’s no need to get out of the car, and it’s faster than brewing coffee at home. However, try to limit the amount you purchase non-essential items for convenience’s sake.
- Ordering Delivery & Fast Food. Everyone is guilty of ordering prepared food in one form or another. Whether you go and pick it up at the window or the food is delivered to your door, you are still paying for convenience.
- Online Shopping. It’s just so easy. A few clicks and consumers can have anything from clothing to their groceries delivered to their home. While it can be tempting to use this strategy to stock your pantry and your closet, if you stopped shopping online, you could save a considerable amount on transport and handling fees alone. Not to mention this plan could help you reduce unnecessary expenditures.
- Health. Not always, but oftentimes, the purchase of convenience negatively impacts our health. Prepackaged foods are among the fastest-growing segments in grocery sales, with sales growing more than 60 percent in the past year.
- The Environment. From diapers, home electronics and kitchen appliances to pre-packaged foods and single-serve coffee pods, our quest for convenience has resulted in increased energy use in packaging and transportation and preparation. It has also resulted in increased waste at an almost alarming rate.
- Perseverance. Oftentimes, the greatest lessons we learn in life are born from inconvenience (or pain and suffering). In fact, numerous scientific studies have proven the same thing. But among a society where convenience and comfort are pursued above everything else, the opportunity to develop perseverance becomes less and less frequent.
- High levels of consumerism. One of the reasons for the high levels of consumption in our world is the ease of availability for these same items. When shopping becomes convenient, so does consumption. And with malls, convenience stores, and fast food restaurants on the corner of every major street, we are constantly presented with convenient opportunities to buy more than we need.
Don’t get me wrong; There are times when convenience is absolutely worth the price. One might even argue our entire system based on the division of labor was born out of convenience—it is easier for me to pay somebody to grow the food and sew the clothing and build the shelter than for me to do it all by myself.
However, if your lifestyle is being compromised in any of the areas above (i.e. finances, health, intentionality, or overconsumption), you might want to reevaluate what purchases you are making purely for the sake of convenience. Because maybe the cost has become too great.
Is There a Middle Ground?
In short, yes. Nothing is black and white. Sometimes, it may be worth it for you to choose convenience and make your life a bit easier.
Personal finance is just that: personal. A decision that works for you financially may not always work for others, and that’s okay.
Routinely examining your finances is a key element to getting out of the poverty pandemic.
Remember to consider the price of convenience the next time you evaluate your spending plan.
Call To Action
Remember you vote with your wallet; For example, choosing to align yourself with companies and efforts that have the least possible environmental impact is how you start to make change.
Moving forward, our mindsets and inclinations toward convenience as a whole need to be reevaluated.
Get in touch with our coaches and lets have an intuitive discussion about convenience spending.
